ASML’s announcement wiped out over $420 billion in combined market value for US and Asian markets
Global semiconductor stocks fell yesterday after ASML, a Dutch company and the world’s leading maker of chip manufacturing equipment, warned of sluggish sales and lowered its 2025 expectations. The announcement mistakenly released a day early on Tuesday, fueled a sell-off in the sector and wiped out over $420 billion in combined market value losses for US and Asian markets.
Following the announcement, ASML shares dropped 4.4%, adding to the previous day’s 14% drop—their largest in 26 years. This decline caused ASML to lose its crown as Europe’s top tech firm, dethroned by Germany’s SAP.
With the boom in the AI sector, investors were optimistic that the chips and equipment industry would see an increase in demand.
However, while companies like Nvidia struggle to meet the high demand for artificial intelligence chips, other sectors like automotive and industrial are seeing slowdowns, with excess inventory forcing customers to cut back orders.
Intel and Samsung are also cautious about spending after seeing a recent decline in sales, reflecting the uncertainty outside of AI-driven demand.
ASML CEO Christophe Fouquet expects the market’s recovery to take until 2025.
The Netherlands-based company plays a key role. It manufactures and supplies some of the most sophisticated machines vital for chipmaking. ASML is the sole supplier of extreme ultraviolet lithography (EUV) machines required to manufacture the most advanced chips.
Investors are now on edge, watching for signs of stabilization or a turnaround in the broader industry.