ASML stock plunge wipes over $50 billion off Dutch chip giant’s value

Shares in semiconductor gear maker ASML fell 16% on Tuesday, after the Dutch firm printed monetary outcomes a day early, issuing disappointing gross sales forecasts.

ASML’s share plunge led the vital semiconductor agency to lose 48.7 billion euros ($52.99 billion) in market capitalization in a single day, in keeping with CNBC calculations utilizing LSEG information.

The transfer additionally pulled different chip shares decrease, with Nvidia, Superior Micro Gadgets and Broadcom all falling after the report.

Netherlands-based ASML on Tuesday stated it expects web gross sales for 2025 to come back in between 30 billion euros and 35 billion euros ($32.6 billion and $38.1 billion), on the decrease half of the vary it had beforehand supplied.

Web bookings for the September quarter have been 2.6 billion euros ($2.83 billion), the corporate stated — effectively under the 5.6 billion euro LSEG consensus estimate. Web gross sales, nevertheless, beat expectations and reached 7.5 billion euros.

“Whereas there proceed to be robust developments and upside potential in AI, different market segments are taking longer to recuperate. It now seems the restoration is extra gradual than beforehand anticipated,” firm CEO Christophe Fouquet stated within the earnings launch.

ASML stated that the early publication of its outcomes was the results of a technical error that led to erroneously publishing the report on part of its web site.

Wall Avenue analysts had turned extra cautious on the corporate — a vital provider to the broader semiconductor trade — within the lead-up to the earnings.

ASML is going through a more durable enterprise outlook in China attributable to U.S. and Dutch export restrictions on shipments.

Final month, the U.S. authorities rolled out new export controls on vital applied sciences to China, together with superior chipmaking instruments. Individually, the Dutch authorities introduced plans to take over management of exports of ASML’s machines to the nation.

ASML’s excessive ultraviolet lithography machines are utilized by most of the world’s largest chipmakers — from Nvidia to Taiwan Semiconductor Manufacturing — to provide superior chips.

ASML Chief Monetary Officer Roger Dassen stated Tuesday that he expects the corporate’s China enterprise to indicate a “extra normalized share in our order ebook and in addition in our enterprise.”

“We do see China trending in direction of extra traditionally regular percentages in our enterprise,” Dassen stated, in keeping with a transcript of a video that was additionally launched a day early.

“So we anticipate China to come back in at round 20% of our whole income for subsequent yr. Which might even be in step with its illustration in our backlog.” 

In its June-quarter earnings presentation, ASML had stated that 49% of its gross sales come from China.

In a word printed following ASML’s outcomes on Tuesday, analysts at Bernstein stated the weaker-than-expected order ebook and a disappointing 2025 outlook have been “more likely to overshadow first rate Q3 outcomes.”

The analysts added that ASML’s lowered steering signifies that “the delayed cyclical restoration and particular buyer challenges are weighing closely” on 2025 expectations.

Analysts at Cantor, in the meantime, stated the downbeat outlook for ASML was “clearly disappointing” and can weigh on semiconductor shares. Nevertheless, they added that, “on no account form or kind does the corporate’s up to date outlook point out any change within the AI development story.”