ASML shares skidded on Wednesday after the microchip equipment maker warned sales might not grow at all next year.
ASML Holding NV (NASDAQ:ASML, ETR:ASME) has warned that mounting geopolitical and economic uncertainty has clouded its outlook for 2026, despite reporting a sharp rise in second-quarter profits and strong demand for semiconductor manufacturing equipment. The Dutch technology group said it could no longer confirm growth for next year, citing what chief executive Christophe Fouquet described as “increasing uncertainty driven by macro-economic and geopolitical developments.
ASML is one of the most critical semiconductor supply chain companies in the world. In this article ASML-NL
ASML , the world's biggest supplier of computer chip-making equipment, on Wednesday reported a rise in second quarter bookings that was above market expectations.
ASML Holding (ASML) is "the machine that makes the machine," says Joe Tigay, referring to its importance in Nvidia's (NVDA) chipmaking process. While the stock closed the gap from April lows, he says outlook will continue to be key for the company.
Investors are hoping that ASML's bookings are robust enough to support its 2026 growth ambitions when the world's biggest chip-making equipment supplier reports its second-quarter earnings on Wednesday.
Upgraded ASML Holding N.V. to Buy ahead of Q2 2025. I expect further upside ahead from semiconductor recovery and strong AI chip demand. China still remains a key risk due to export controls and revenue concentration. Furthermore, China's Big Fund III may lead to a decline in sales in the long term. Additionally, long-term growth is uncertain due to slow adoption of high EUV machines and limited conviction from major fabs like TSMC.
ASML Holding is expected to beat Q2 earnings as strong AI chip demand boosts EUV sales, but China export curbs pose a looming risk.
ASML is an incredible company, but you shouldn't expect a rapidly expanding empire from a fortress with an already established moat. Invest in ASML for moderate-alpha defensiveness along cyclical dynamics. Elite growth investors should look elsewhere. Q2 results are coming up and will likely show continued resilience, but there are points of constraint to monitor in the earnings call, including China and high-NA EUV adoption progress.
I reiterate my Buy rating on ASML Holding N.V., expecting another earnings beat driven by strong AI demand and the company's monopoly in EUV lithography. Sustained, robust demand across the AI ecosystem ensures continued need for ASML's monopoly-like EUV technology, signaling strong future orders and a positive management outlook. ASML's seemingly high valuation is justified by its competitive moat, superior growth, and record margins, while still trading at a discount to historical averages.
ASML (ASML) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Strong demand for DUV lithography systems is driving sales in China, but export curbs and trade tensions threaten future momentum.