ASML Faces Market Challenges Amid AI Chip Surge

ASML reported weaker-than-expected third-quarter bookings and lowered sales forecasts for 2025, causing a significant drop in its share prices. Despite strong AI chip demand, other semiconductor sectors remain sluggish. The company's earnings exceeded expectations, but future growth projections lag behind initial estimates.

ASML, a leading computer chip equipment manufacturer, stunned markets with lower-than-expected third-quarter bookings and a reduced sales outlook for 2025, triggering the largest single-day share price slump since 1998. The company's performance highlights ongoing challenges within the semiconductor market, despite robust demand for AI-related chips.

As the largest supplier of chip manufacturing equipment, ASML counts industry giants such as Taiwan's TSMC, Intel, Samsung, Micron, and SK Hynix among its top clients. The premature release of quarterly earnings on their website led to unexpected market fluctuations.

In light of the results, CEO Christophe Fouquet projected a modest growth in net sales for 2025, with figures projected between 30-35 billion euros, aligning with the lower half of previous forecasts. Analysts noted the company's net profit stood at 2.1 billion euros on sales of 7.5 billion euros, surpassing estimates, yet bookings fell short at 2.6 billion euros.

(With inputs from agencies.)