ASML Stock Price Drops Amid Uncertainty Over Growth Outlook

ASML shares dropped 8% to $754, breaking down from a rising wedge pattern and potentially setting the stage for follow-through selling. Key support levels to watch are $695 and $650, while resistance levels are near $775 and $855. Investors should monitor these levels closely due to the uncertain growth outlook and tariff uncertainty weighing on the company.

ASML Holding N.V. (ASML) shares dropped by 8% to $754 on Wednesday, breaking down from a rising wedge pattern and potentially setting the stage for follow-through selling. The stock's decline came on the heels of the company's second-quarter earnings report, where ASML reported strong bookings but warned about potential growth stagnation in 2026 due to tariff uncertainty [1][2].

The company's shares fell to $754 from a high of $855, breaking a rising wedge pattern that had been in place since early 2025. This pattern, characterized by a series of higher highs and higher lows, suggested a bullish trend. However, the recent sell-off indicates a shift in investor sentiment, driven by concerns about ASML's future growth prospects.

Key support levels to watch are $695 and $650, while resistance levels are near $775 and $855. Investors should monitor these levels closely due to the uncertain growth outlook and tariff uncertainty weighing on the company.

ASML reported net bookings of €5.5 billion ($6.4 billion) in the second quarter, beating analyst estimates of €4.44 billion. The company's net sales and net profit also exceeded expectations, with net sales at €7.7 billion ($8.95 billion) and net profit at €2.3 billion. However, the company's CFO, Roger Dassen, warned about potential delays in investments due to uncertainty surrounding U.S. tariffs [3].

The company's CEO, Christophe Fouquet, stated that while ASML's AI customers' fundamentals remain strong, increasing uncertainty driven by macro-economic and geopolitical developments makes it difficult to confirm growth for 2026. The company's third-quarter revenue guidance of between €7.4 billion and €7.9 billion also fell short of market expectations [3].

ASML's warning comes amid increasing uncertainty from President Trump's tariffs. The chip industry has been seeking clarity for months as the Trump administration's trade policies have created uncertainty about the future of the semiconductor supply chain.

Investors should closely monitor ASML's future earnings reports and any updates on tariff policies to gauge the impact on the company's growth prospects. The uncertainty surrounding ASML's future growth and the potential impact of tariffs on its business model may continue to weigh on the stock's performance.

References:

[1] https://stockanalysis.com/stocks/asml/
[2] https://www.reuters.com/business/asmls-second-quarter-bookings-beat-estimates-2025-07-16/
[3] https://www.ainvest.com/news/asml-warns-uncertainty-2026-growth-tariff-uncertainty-2507/