ASML, a top supplier of chip-making equipment, recently warned that its revenue growth may not keep up in 2026. This message led to a drop of about 7% in its stock value during early Wednesday trading.
In its second quarter, ASML reported net bookings of $5.54 billion, exceeding analysts’ expectations of $4.44 billion. The surge in orders is mainly due to high demand for artificial intelligence technology.
CEO Christophe Fouquet highlighted growing uncertainty in the market, mainly because of macroeconomic issues and geopolitical tensions, including tariffs. CFO Roger Dassen stated that ASML is closely collaborating with its supply chain to minimize risks.
Fouquet also mentioned the possibility of a flat revenue year, which would break a streak of consistent growth since 2012. Despite this, Han Dieperink, CIO of Aureus Investment, expressed that he isn’t too worried. He feels the strong bookings reflect solid customer demand.
ASML’s advanced extreme-ultraviolet lithography systems are essential for producing high-performance chips, like those used in Nvidia GPUs and Apple devices. Interestingly, sales of machines to China accounted for 27% of ASML’s total sales over the last three quarters, surpassing earlier predictions of 20%. This indicates that chipmakers in China are still acquiring equipment despite looming export controls.
Recent research supports the idea that the chip industry remains robust, with global chip sales rising steadily. A recent report from the Semiconductor Industry Association found that global semiconductor sales reached $556 billion last year, a significant increase from previous years.
Understanding these trends is critical, especially as the tech landscape continues to evolve. Despite some uncertainty, the continued demand for AI-related technology may offer a buffer for companies like ASML.
For more information about ASML’s recent financial performance and challenges, you can check out a detailed analysis on GuruFocus.
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Christophe Fouquet, ASML, revenue growth, Visible Alpha, Roger Dassen
