ASML Cuts Q3 Sales Forecasts: Shares Plummet After Weak Bookings and 2025 Outlook

Computer chip equipment maker ASML

ASML Shares Plummet After Weak Q3 Earnings and Lower 2025 Sales Forecasts

ASML, the leading computer chip equipment manufacturer, reported third-quarter earnings that shocked investors with disappointing bookings and a revised, lower sales forecast for 2025. This news triggered the company’s largest single-day share drop since 1998.

Despite a surge in demand for AI-related chips, ASML indicated that other segments of the semiconductor market are recovering slower than anticipated. This has led logic chip manufacturers to delay orders and memory chip customers to add only limited new capacity. ASML, Europe’s largest tech firm, counts major players like TSMC, Intel, Samsung, Micron, and SK Hynix among its key clients.

In an unexpected move, the company published its earnings results a day early, which contributed to the market volatility. CEO Christophe Fouquet stated that total net sales for 2025 are now expected to be between €30 billion and €35 billion, reflecting the lower end of previous projections shared during the 2022 Investor Day.

Shares were halted multiple times in Amsterdam trading, falling 16% to €668.10 by 1542 GMT. The earnings report revealed a net profit of €2.1 billion on sales of €7.5 billion ($8.2 billion), slightly exceeding analyst expectations. However, bookings of €2.6 billion fell significantly short of forecasts, which ranged from €4 billion to €6 billion.

ASML emphasized that while the demand for AI chips is robust, the overall market's recovery is slower than expected, leading to cautiousness among customers. A spokesperson for the company mentioned that they are working on a comprehensive explanation for the early publication of their results.

($1 = 0.9172 euros)

ASML Cuts Q3 Sales Forecasts: Shares Plummet After Weak Bookings and 2025 Outlook