Dutch semiconductor machinery giant ASML Holding NV has found itself in thrall of the Dutch government's alignment to US tech sanctions against China. At stake is ASML's mid-range deep ultraviolet (DUV) lithography technology- a crucial cog in the global semiconductor supply line of which ASML commands a global monopoly.
ASML caught a downgrade from a Wall Street analyst. Skepticism over AI-fueled growth is abounding.
The Dutch government on Friday said it would begin requiring export licences for two more of ASML's "Deep Ultraviolet" or DUV lithography tools, used in making computer chips, in the name of national security.
The Netherlands said it is expanding export restrictions on advanced semiconductor manufacturing equipment, bringing more of ASML's machines under curbs.
In the latest trading session, ASML (ASML) closed at $795.60, marking a -1.96% move from the previous day.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Russian firms were able to obtain spare parts for 25-year-old ASML chipmaking machines in 2022 to 2023 on secondary markets despite European Union sanctions, Dutch newspaper Trouw reported on Thursday, citing Russian customs documents.
The chief executive of Dutch computer chip equipment supplier ASML on Wednesday said a U.S.-led campaign to restrict the company's exports to customers in China in the name of national security has become more "economically motivated" over time.
ASML's sales have been growing over the last 18 months as it rides the AI demand wave. The company is at risk of losing access to Chinese customers.
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The stock has fallen as worries grow over the U.S.-China chip war. UBS analyst Francois-Xavier Bouvignies had other reasons to downgrade his rating on the chipmaking-equipment company.
Just short of €15 billion was wiped from the value of ASML Holding NV (NASDAQ:ASML), the Dutch semiconductor equipment manufacturer, after it was downgraded to "neutral" from "buy" by UBS due to expectations of slowing earnings growth over the coming years. In a research note published on Wednesday, the Swiss investment bank cited a shift in the market environment and forecast a decline in ASML's earnings potential, marking a shift in sentiment toward one of Europe's top tech companies.