ASML Faces Uncertain Growth Amid Geopolitical Challenges

ASML, the leading supplier of chip-making equipment, may not achieve its expected growth in 2026. Despite Q2 bookings surpassing forecasts, geopolitical factors create uncertainty. Chief Executive Christophe Fouquet highlighted the impact of tariffs. ASML continues to work with its supply chain amidst strong demand, particularly from AI-related chipmakers.

ASML, the world's largest provider of computer chip-making equipment, has hinted at potential challenges in achieving growth targets for 2026, despite beating second-quarter booking expectations. This news emerges as geopolitical uncertainties, notably tariffs, weigh heavily on the company's outlook.

Chief Executive Christophe Fouquet expressed rising uncertainties driven by macroeconomic and geopolitical factors, with tariffs playing a significant role. CFO Roger Dassen emphasized the uncertainties surrounding the direct and indirect impact of tariffs, as ASML collaborates with its supply chain to address potential implications.

ASML reportedly saw strong demand, especially from AI-focused chipmakers, as evidenced by net bookings of 5.54 billion euros, surpassing analyst predictions. With notable sales in China, where demand persists amid anticipated U.S. export restrictions, the Dutch group remains a critical supplier in the chipmaking industry.

(With inputs from agencies.)