ASML Slips to Fourth on WSB Index Amid Market Turbulence
ASML, ranked fourth on the latest WSB index, has dropped by one position from the previous day. The Dutch semiconductor equipment manufacturer recently experienced a significant share price decline. Over the past two days, shares of ASML have plunged 6.42%, marking a two-day decline of 21.64% and reaching their lowest point since November 2023.
A premature financial report release exposed disappointing Q3 figures, with new orders reaching only €26 billion, significantly below expectations. The company has also adjusted its net sales forecast for 2025 to €300-350 billion, lower than previous estimates. This news contributed to a substantial drop in ASML's stock price, which plummeted over 15%, erasing more than €500 billion in market value in a single day.
Concerns have been raised about ASML's reliance on the Chinese market amid export restrictions imposed by the U.S., though the impact is said to stem more from external pressures than mere dependency. ASML reported that while demand in China remains high, other markets have softened, increasing the Chinese sales share.
The U.S.-led export restrictions, particularly impacting ASML's ability to sell its advanced lithography machines, have led to accelerated equipment stockpiling by Chinese buyers. This short-term surge in demand, however, is expected to stabilize, as indicated by ASML's CFO Roger Dassen, with 2025 sales projections to return to approximately 20% of historical levels.
With key clients like Intel reducing orders due to cutbacks in capital expenditure and other global market pressures, ASML faces a dual challenge of falling demand both within China and in broader international markets. The U.S.'s persistent push for restrictive measures on semiconductor equipment could catalyze domestic advancements in China, potentially prompting ASML's market share to shrink further.
Amidst these challenges, ASML’s strategic positioning in the global chip market remains critical, and the company continues to navigate geopolitical and market uncertainties actively. The evolving landscape serves as a testament to shifting dynamics within the industry, suggesting that a new era of semiconductor development is underway.