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Key Stats for ASML Stock
- 1-day Price Change for ASML stock: -7%
- Current Share Price: $768
- 52-Week High: $1,077
- ASML Stock Price Target: $890
What Happened?
ASML Holding (ASML) stock is down 7% after the Dutch semiconductor equipment giant reported mixed second-quarter results and warned it could see no growth in 2026 due to macroeconomic and geopolitical uncertainties.
While ASML beat analyst expectations for Q2 with net sales of $8.95 billion (€7.7 billion) versus the expected $8.81 billion, and net income of $2.66 billion (€2.29 billion) versus the expected $2.37 billion, investors were disappointed by its cautious outlook for next year and weaker-than-expected Q3 guidance.
ASML forecast Q3 revenue between $8.61 billion and $9.19 billion (€7.4-7.9 billion), which fell short of market expectations of $9.65 billion (€8.3 billion).
It also narrowed its full-year 2025 guidance to around 15% growth, implying revenue of approximately $37.77 billion (€32.5 billion), down from its previous range of $34.86 billion to $40.67 billion (€30-35 billion).
ASML’s warning about potential zero growth in 2026 has spooked investors. CEO Christophe Fouquet stated that while the fundamentals of AI customers remain strong, “increasing uncertainty driven by macro-economic and geopolitical developments” prevents it from confirming growth for 2026.
See analysts’ growth forecasts and price targets for ASML (It’s free!) >>>
What the Market Is Telling Us About ASML Stock
The market’s negative reaction to ASML stock reflects concerns about its exposure to global semiconductor industry headwinds, particularly around U.S.-China trade tensions and tariff policies.
Like many semiconductor companies, ASML has been grappling with uncertainty created by evolving U.S. export controls and tariff policies that affect its ability to sell advanced equipment to Chinese customers.
However, ASML has demonstrated resilience in several key areas, suggesting that the underlying business remains strong.
ASML reported net bookings of $6.39 billion (€5.5 billion) in Q2, above analyst expectations of $4.87 billion (€4.19 billion), indicating robust demand for its critical lithography equipment.
The strong bookings performance was driven by artificial intelligence demand, which CFO Roger Dassen described as “a big driver for EUV” systems.
This AI-driven demand reflects ASML’s critical role in manufacturing the most advanced chips required for AI applications from companies like Apple, Nvidia, Intel, and Taiwan Semiconductor Manufacturing Company.
Despite the uncertainty in 2026, ASML’s fundamental position in the semiconductor supply chain remains unassailable.
It maintains a virtual monopoly in extreme ultraviolet (EUV) lithography machines, which are essential for manufacturing cutting-edge semiconductors. These machines, some costing over $400 million each, are irreplaceable for producing the world’s most advanced chips.
ASML’s financial strength also provides a buffer against cyclical downturns. It reported a 53.7% gross margin and a 34.6% operating margin, while maintaining a robust balance sheet with $8.43 billion (€7.25 billion) in cash and equivalents.
ASML also returned $1.63 billion (€1.4 billion) to shareholders through share buybacks in the second quarter alone.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
