ASML collapses in the stock market for its machinery orders to make chips | Financial markets
ASML, a Dutch manufacturer of the most sophisticated chips, fell in the stock market on Wednesday by 5.33% after reporting the first quarter of 2025’s order book after reporting less than 1 billion euros. On the performance of the first three months of the yearInvestors did not know how to calculate the impact of tariffs and admitted that “the margin planned in the second quarter of 2025”. This Wednesday fall will eliminate the stock market capitalization of more than 10,000 million euros and leave the company at the lowest level since November 2023.
If the demand for ASML Artificial Intelligence (AI) continues and its customers can increase its efficiency according to its plans, the company can reach the upper range of its entire net sales guide by 2025, in which it is between 30,000 and 35,000 million euros. However, uncertainty with some of its clients can take it to the lower intensity of the range, they agreed. The market, which has given commercial uncertainty, has chosen less prosperity.
According to the City, “depression” and tariff uncertainty in the first trimester “clearly cloudy” perspectives. As a result, Simon Coles of Barclays said that ASML needs 3,000 to 5,000 million euros in every quarter in the next three to five quarters in the next three to five quarters. “This seems to be a management, but our concern is that two important clients don’t give significant orders in short term,” he said.
These clients include giants like TSMC or Intel. According to the data compiled by Bloomberg that these first three months requests were 3,940 million euros, analysts were waiting for an average of 4,820 million euros. ASML is the only product of expensive lithography machines used by semiconductor companies to make sophisticated chips for various products such as Enviafricial Intelligence processors. Since technical giants are projecting billions of dollars in data centers to increase this technology, the company of the Artificial Intelligence (AI) has taken advantage of the company’s company, which requires only chips made with ASML systems to increase this technology. In 2030, the company estimates income between 44,000 million and 60,000 million euros.
Anxiety has been intensified for decreasing demand after some manufacturers’ despair and analyst warnings, they see clear air in tariffs against the industry. “Recent tariff ads have increased uncertainty in the gross economic environment and will continue to be dynamic for a while,” ASML Executive Director Christof Fouquet said in a statement on Wednesday. In the ways we have a tariff According to Financial Director Roger Dasen. Fouquet has made it clear that conversations with customers that grow 2025 and 2026 years are supporting their assessment.
The US has banned exports of sophisticated semiconductor technologies to China to stop the development of the Beijing domestic chips industry, as a means of conditioning their military and AI capabilities. ASML is never allowed to sell its extravagant ultraviolet lithography machines (EUV) to China for US restrictions. After the pressure of the Biden administration, the Dutch government limited the second most sophisticated machines and the exports of deep ultraviolet lithography systems by Immersion (DUV). Company EUV machines represent a net order of 1.2 billion euros during this quarter. However, China has represented 27% of the net sales of low -sophisticated systems in ASML, the second largest market in the company during that period. Although it is the same contribution to the previous three months, it will drop from an average of 41% in 2024, and sales for the Asian giant will be reduced to 20% in 2025.
Donald Trump’s tariffs promise to disrupt the semiconductor market. The actions of chips manufacturers are usually banned by Trump for sale of their H20 chip to China, and they have called for new regulations to disappoint Beijing’s super computer capabilities. Silicon Valley Giant shares fell 6% of the operations after the Wall Street closed, After saying that this limit will cost $ 500 million.
US. Analysts have warned that this measure affects the demand of chips and ASML customer investment plans. Last week, the Trump Administration removed its mutual tariffs for some products such as smart mobiles, computers and semiconductors. But on Monday, the US trade department has begun to investigate the impact of the US national security of “semiconductor imports and semiconductor manufacturing equipment”, which has been commented on as an anterior signal to impose specific tariffs on this industry.
