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Chip firm ASML shares plunge 15% after warning of weaker China sales in early release

An icon of ASML is displayed on a smartphone, with an ASML chip visible in the background.

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Shares in semiconductor equipment maker ASML fell 15.6% Tuesday after the Dutch company published disappointing sales forecasts in results a day early.

The move pulled other chip stocks lower, with Nvidia, Advanced Micro Devices and Broadcom all falling at least 4% following the news.

ASML said it expects net sales for 2025 to come in between 30 billion euros ($32.72 billion) and 35 billion euros, at the lower half of the range it had previously provided.

Net bookings for the September quarter came in at 2.6 billion euros ($2.83 billion), the company said — well below the 5.6 billion euro LSEG consensus estimate. Net sales, however, beat expectations coming in at 7.5 billion euros.

“While there continue to be strong developments and upside potential in AI, other market segments are taking longer to recover. It now appears the recovery is more gradual than previously expected,” company CEO Christophe Fouquet said in the earnings release.

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AMSL

ASML said that the early publication of its results was due to a technical error which saw it erroneously publish the report on a part of its website.

In the leadup to the earnings, Wall Street analysts had turned more cautious on the chip firm, which is a critical supplier to the broader semiconductor industry.

China concerns

‘Clearly disappointing’

In a note released following ASML’s results Tuesday, analysts at Bernstein said the firm’s weaker-than-expected order book and a disappointing 2025 outlook were “likely to overshadow decent Q3 results.”

The analysts added that ASML’s lowered guidance indicates that “the delayed cyclical recovery and specific customer challenges are weighing heavily” on 2025 expectations.

Analysts at Cantor, meanwhile, said the downbeat outlook for ASML was “clearly disappointing” and will weigh on semiconductor stocks. However, they added that, “in no way shape or form does the company’s updated outlook indicate any change in the AI growth story.”

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