ASML Holdings (ASML, Financial), Europe's semiconductor giant, faced its worst one-day stock decline since 1998, falling over 15% after an unintentional early release of its third-quarter earnings. The leaked results revealed a 53% drop in bookings, far below market expectations, despite a 20% increase in net sales to €7.5 billion. This discrepancy between strong current performance and weak future demand triggered a broad sell-off, as investors scrambled to reassess the company's growth trajectory.
The real hit came from ASML's revised 2025 forecast. The company lowered its sales outlook to €30-35 billion, down from the previous €30-40 billion range. This revision stems from delayed demand for ASML's EUV lithography machines, crucial for manufacturing next-gen chips. While the boom in AI-related chips remains strong, other segments—such as logic and memory—are recovering more slowly, adding to investor concerns about longer-term growth and profitability.
Despite these headwinds, ASML remains confident in its long-term drivers, particularly in AI and electrification trends. However, this market volatility has prompted heightened scrutiny from investors, with the company now facing pressure to navigate slower growth in key segments while maintaining its leadership in semiconductor technology.
