ASML reports lower-than-expected orders due to chipmakers holding back on spending

From Quiver Quantitative: 2024-10-16 04:14:21

ASML, a major supplier of semiconductor manufacturing equipment, reported lower-than-expected third-quarter orders, totaling €2.63 billion. This is well below the forecast of €5.59 billion, attributed to chipmakers holding back on capital spending due to an inventory glut. CEO Christophe Fouquet noted strong demand for AI chips but acknowledged slower recovery in other sectors. ASML revised its 2025 sales forecast to €30-35 billion, down from €40 billion. Despite challenges, its high-end EUV tools remain in demand. Geopolitical tensions, including export controls to China, add uncertainty to ASML’s future outlook.

ASML’s underwhelming third-quarter orders highlight broader industry challenges, with chipmakers cautious on spending. While AI chip demand is strong, other sectors are slow to recover, leading to revised long-term sales forecasts for ASML. The company must navigate geopolitical tensions, including export curbs to China, which could impact sales. Despite hurdles, ASML remains vital in the semiconductor supply chain, especially in AI fields. Its advanced EUV tools are crucial in chip manufacturing but investors must consider geopolitical risks and market uncertainties.



Read more at Quiver Quantitative: ASML Faces Slower Growth as Chip Industry Lags Behind AI Surge