ASML Reports Earnings Amid Chip Market Decline

ASML's disappointing quarterly earnings report has triggered a significant sell-off in global chip stocks, leading to a combined market value loss of over $420 billion in the semiconductor sector. The company reported order bookings of only €2.6 billion, far below the expected €5.5 billion, and downgraded its 2025 sales forecast to a range of €30 billion to €35 billion. Despite a robust demand for AI chips, ASML CEO Christophe Fouquet indicated that the broader chip market recovery may extend well into 2025 due to customer caution and slower growth in non-AI applications. Major players like Nvidia, Applied Materials, and TSMC experienced notable declines following ASML's report, although some analysts maintain that ASML's struggles may be company-specific. As the market reacts to these developments, concerns linger regarding the long-term impact of export restrictions on ASML's sales, especially in China. Overall, while AI demand remains strong, the outlook for other segments of the chip market appears less optimistic.