ASML shares drop sharply after warning on semiconductor restoration | USAEMALL.com

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Shares in ASML dropped sharply on Tuesday after the chip equipment maker warned of a slower-than-expected recovery in the semiconductor market, in results that were unexpectedly published a day early.

“While there continue to be strong developments and upside potential in AI, other market segments are taking longer to recover,” said chief executive Christophe Fouquet in the earnings statement. ASML cut its outlook for 2025 after reporting orders that were only half as much as investors had expected for the third quarter.

“It now appears the recovery is more gradual than previously expected. This is expected to continue in 2025, which is leading to customer cautiousness,” Fouquet added.

ASML’s quarterly results, which had been scheduled for release on Wednesday, were briefly published on its website late on Tuesday afternoon before the post was deleted. The post was republished about 30 minutes later. ASML blamed a “technical error” for the early publication.

ASML’s stock was down almost 17 per cent in midday trading in New York as its gloomy outlook reverberated throughout the tech sector.

Shares in US chipmakers Nvidia — which on Monday hit a new all-time high — and AMD fell by about 5.5 per cent, Broadcom was down 4 per cent and chip designer Arm was almost 8 per cent lower following the news.

Netherlands-based ASML said that its total net sales for 2025 would be €30-€35bn, with a gross margin of 51-53 per cent. It had previously said that revenues could be as high as €40bn for the year, with 54-56 per cent gross margins.

ASML, which is Europe’s most valuable tech company, is the dominant provider of the precision chipmaking machines that Taiwan Semiconductor Manufacturing Company, Intel and Samsung Electronics use to produce their most advanced semiconductors.

Net bookings — a measure of orders placed by ASML’s customers — were €2.6bn for the third quarter, far lower than the more than €5bn that analysts had expected.

Challenges at Intel and Samsung appear to have contributed to ASML’s weaker results.

Intel is racing to cut costs by reducing headcount and delaying investments in new production facilities after it reported disappointing results in August. Earlier this month, Samsung acknowledged it was facing a “crisis” after falling behind in AI chipmaking, as a downturn in the memory market looms.

In a pre-recorded interview published on Tuesday, ASML’s finance chief Roger Dassen said “very specific competitive issues in the foundry business” had contributed to a slower recovery in those chip markets that were not benefiting from booming demand for AI computing infrastructure.

“Very clearly, the strong performance of AI clearly continues,” he added.