ASML Shares Tumble 16% as Early Q3 Earnings Shock Semiconductor Sector

ASML's recent performance sent shockwaves through the semiconductor industry, as shares plummeted 16.26% on October 15, marking the lowest since January 2024. The unexpected early release of their Q3 earnings report revealed disappointing projections, largely due to a technical glitch that led to premature disclosure.

The market reacted strongly as ASML's anticipated 2025 net sales between €300 billion and €350 billion fell short of the €358 billion expected. CEO Christophe Fouquet highlighted the slower-than-expected recovery, despite continued optimism about AI's growth potential.

The company's Q3 order volume of €2.6 billion was considerably below analyst estimates, triggering a 15% drop in ASML’s US stock and halting trade momentarily. This downturn spread across the semiconductor sector, with the Philadelphia Semiconductor Index suffering its largest one-day decline since early September.

The ramifications of ASML's revised guidance have raised industry-wide concerns. Michael Roeg from Degroof Petercam pointed out the cautionary stance of customers as a significant factor, although he remains confident in a 2025 sales rebound starting in 2024.

These developments have exerted downward pressure on the broader tech sector, with major indices experiencing declines. The reaction underscores the heightened sensitivity to supply chain forecasts amidst fluctuating recovery timelines for key tech segments.