- Investors in chip stocks are facing renewed pressure after ASML Holding NV, a key supplier of semiconductor equipment, issued a weaker-than-expected outlook, triggering a global sell-off in the sector. ASML shares dropped 5% on Wednesday, extending earlier losses and contributing to a combined $420 billion market value drop among US and Asian chipmakers. ASML, a Dutch company known for producing advanced chipmaking machines, revised its 2025 sales forecast down from €40 billion to €35 billion, citing slower demand in areas outside of artificial intelligence (AI).
- The market reaction intensified after the results were mistakenly released a day early, leaving shareholders without the usual context from investor relations. ASML’s share price plunge wiped out €50 billion of its market value, one of Europe’s largest single-day losses since the tech bubble burst 25 years ago.
Why it matters
Asian chip stocks were also hit, with shares of companies like Tokyo Electron and Taiwan Semiconductor Manufacturing Co. falling. Despite the downturn, some investors believe ASML’s issues may be company-specific, as AI demand remains strong and China's economic efforts could aid broader recovery in the sector.
