By Toby Sterling and Nathan Vifflin
AMSTERDAM (Reuters) – ASML, a leading computer chip equipment maker, has seen a shift in investor and analyst sentiment following a recent revision of its 2025 financial guidance. The company cited market weakness outside of AI and delayed orders as contributing factors.
Despite being a crucial supplier to chipmakers in Europe, concerns have arisen regarding ASML’s near-term sales outlook and its ability to sustain growth above industry averages in the long run.
The adjustment to guidance led to the largest sell-off of ASML shares in twenty years, with prices dropping 4.9% to 635.60 euros on Wednesday from a peak above 1,000 euros in July.
Following a period of increased demand during the pandemic, ASML noted that some customers have postponed new projects and upgrades, particularly in the production of logic chips for electronic devices.
Nick Rossolillo of Concinnus Financial cautioned investors about placing excessive expectations on a single company, especially one like ASML that relies heavily on the investment decisions of its clients in the manufacturing sector.
Although ASML did not disclose specific clients affecting the guidance revision, analysts are closely monitoring TSMC, a major customer responsible for AI and smartphone chips, for potential insights into the semiconductor industry’s overall health.
With companies like Intel and Samsung also scaling back capital expenditures, there is uncertainty surrounding the future spending patterns in the chipmaking sector, where ASML commands a significant share.
ASML executives are scheduled to provide further insights on the situation during an upcoming analyst call.
(Reporting by Toby Sterling and Nathan Vifflin; editing by Barbara Lewis)