ASML Warns 2026 Growth Uncertain Amid Trade, Geopolitics

ASML, the world's largest supplier of chip manufacturing equipment, has signaled uncertainty about its growth prospects for 2026 despite strong second-quarter orders surpassing analyst expectations. CEO Christophe Fouquet cited increasing geopolitical and macroeconomic uncertainties, particularly potential US trade restrictions and tariffs on chip-making equipment, as key risks that could impact ASML's business and profit margins. The company reported second-quarter bookings of €5.5 billion and projected third-quarter net sales between €7.4 billion and €7.9 billion, though this guidance fell short of market estimates. While ASML anticipates benefiting from sustained investments in AI and advanced chip production, it is cautious about confirming growth next year due to the unpredictable trade environment under the Trump administration. ASML's shares have declined sharply over the past year amid these concerns, reflecting broader industry challenges and investor apprehension. The firm remains optimistic about long-term growth driven by AI demand but is more reserved about near-term developments.