Shares in ASML, the Dutch chip equipment maker, experienced a significant decline on Tuesday, leading to a tech rout on Nasdaq. This came after the company issued a warning about a slower recovery in the semiconductor market. The results were accidentally published one day early and revealed that ASML had cut its outlook for next year. Orders for the third quarter were only half of what investors had anticipated. CEO Christophe Fouquet attributed this to “customer cautiousness” and predicted a more gradual recovery in all areas beyond artificial intelligence.
The disappointing results were briefly published on ASML’s website before being deleted and then republished 30 minutes later due to a “technical error.” As a result of this gloomy outlook, ASML’s stock dropped nearly 17% during early afternoon trading in New York. The impact was felt throughout the tech sector as well, with shares in US chipmakers Nvidia, AMD, Broadcom, and Arm all experiencing declines.
ASML stated that its total net sales for 2025 would range between €30bn-€35bn with gross margins of 51%-53%. Previously, it had projected revenues as high as €40bn with gross margins of 54%-56%. As Europe’s most valuable tech company and dominant provider of precision chipmaking machines used by major players like Taiwan Semiconductor Manufacturing Company (TSMC), Intel, and Samsung Electronics; challenges at Intel and Samsung have contributed to ASML’s underwhelming performance.
Intel has been focused on cost-cutting measures such as reducing headcount and delaying investments following disappointing results earlier this year. Meanwhile, Samsung is facing difficulties in AI chipmaking while also dealing with an impending downturn in the memory market.
ASML’s finance chief Roger Dassen explained that specific competitive issues within the foundry business have hindered recovery in chip markets not benefiting from increased demand for AI computing infrastructure. Despite these challenges, Dassen noted that AI continues to perform strongly.
Furthermore, ASML expects its sales to China to decrease next year from almost half of revenues during Q3 to around 20%. Shipments of advanced lithography machines have been restricted by both Dutch and US governments over concerns about Beijing’s development of AI systems. However, Chinese chipmakers continue importing older equipment for production purposes related to household appliances and industrial machinery expansion.
