ASML Shares Plummet Amid Market Concerns

ASML Holding NV's shares experienced their largest decline in 26 years after the company unexpectedly released its third-quarter earnings early, revealing weak order inflows and a cut in 2025 financial guidance. This triggered a significant sell-off in the semiconductor sector, with ASML's stock plummeting by 16% and contributing to a broader $420 billion loss in market value for chipmakers. The revised forecast, citing decreased demand outside of AI, has raised concerns about potential overcapacity and reliance on delayed orders from major customers like TSMC, Intel, and Samsung. Despite ASML's dominance in lithography tools essential for semiconductor production, the company faces challenges from tighter export controls to China and a more cautious global market outlook. Analysts suggest that the market's reaction was an overreaction, given that only 10% of ASML’s revenue is AI-related. Investors await further clarification from ASML executives during scheduled analyst calls.