ASML Holding Plunges 4.77% on Weak Orders, Trade Uncertainty

On April 16, 2025, ASML Holding's stock experienced a significant drop of 4.77% in pre-market trading, reflecting investor concerns and market volatility.

ASML Holding's recent financial performance and guidance have been influenced by several factors. The company's first-quarter results showed a net order intake of 39.4 billion euros, falling short of the expected 48.9 billion euros. This decline in orders indicates a cautious approach by semiconductor manufacturers due to economic uncertainties and geopolitical tensions. The company's net sales for the quarter were 77.4 billion euros, slightly below the anticipated 78 billion euros, while net profit reached 23.6 billion euros, exceeding expectations of 23 billion euros.

ASML's CEO, Christophe Fouquet, highlighted that while artificial intelligence remains a key driver for chip equipment demand, the current economic environment and trade policies have introduced significant uncertainties. The company's guidance for the full year 2025 projects sales between 300 billion and 350 billion euros, with a gross margin ranging from 51% to 53%. However, the ongoing trade tensions and potential tariff impacts have added layers of complexity to the market dynamics, affecting both the demand and supply chains.

Fouquet also noted that the company's conversations with clients support the expectation of continued growth in 2025 and 2026. However, the fluctuating trade policies and their impact on different client segments have created both opportunities and risks. The recent announcements and reversals of tariff policies by the U.S. government have further complicated the market outlook, leading to increased volatility and uncertainty for ASML and the broader semiconductor industry.