Chipmaker ASML Shares Plummet on Low Sales Forecast

Dutch semiconductor equipment giant ASML saw its shares plummet by 16%, wiping out approximately $52.99 billion in market value. The sharp decline followed the early release of its third-quarter results, which included a lower-than-expected sales outlook for 2025. 

ASML now projects net sales between $32.6 billion and $38.1 billion, the lower end of its previous guidance. While net sales for the September quarter exceeded expectations, reaching $8.1 billion, new bookings were significantly below estimates, coming in at $2.8 billion compared to the consensus of $5.9 billion.

CEO Christophe Fouquet noted that while AI-driven demand remains strong, other market segments are experiencing a slower recovery than anticipated, contributing to the more cautious forecast.

ASML's challenges are compounded by geopolitical tensions, particularly export restrictions imposed by the U.S. and the Netherlands on advanced chipmaking technology to China. The company’s extreme ultraviolet lithography machines, essential for producing advanced chips, have been affected by these restrictions. ASML's CFO Roger Dassen expects China's contribution to ASML’s revenue to stabilize at around 20% next year, a reduction from the 49% share it held in the second quarter.

Despite the weaker 2025 outlook, analysts emphasized that the slowdown does not signal a shift in the AI growth trajectory. However, the disappointing order book and continued uncertainty in global markets are expected to weigh on ASML and the broader semiconductor sector in the near term.