ASML (ASML.AS), the leading supplier of semiconductor manufacturing equipment, has significantly lowered its sales forecasts for 2025, resulting in the steepest decline in its share price since 1998. The company, which released its quarterly earnings report a day early due to what it described as a “technical error,” cited persistent weaknesses in the semiconductor market as the primary reason for the downward revision.
Despite a surge in demand for AI-related chips, ASML’s Chief Executive Christophe Fouquet noted that other segments of the semiconductor industry are struggling more than anticipated. This ongoing market weakness has prompted logic chip manufacturers to delay orders and memory chip producers to adopt a cautious approach toward expanding production capacity.
ASML, Europe’s largest tech company, serves major clients including TSMC, Intel, Samsung, Micron, and SK Hynix. In his statement, Fouquet projected that total net sales for 2025 would range between 30 to 35 billion euros, placing it within the lower end of previous estimates.
The company reported a net profit of 2.1 billion euros on sales of 7.5 billion euros ($8.2 billion), slightly exceeding analyst expectations. However, its bookings for the quarter fell short, totaling just 2.6 billion euros compared to forecasts of 4 to 6 billion euros.
Following the earnings announcement, ASML’s shares experienced multiple trading halts in Amsterdam, ultimately closing down 16% at 668.10 euros. The stock has struggled throughout the summer, driven by Intel’s announcement of cuts to its capital spending and ongoing declines in memory chip prices.
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