ASML Holding faced a more than 11% drop in shares after disappointing second-quarter results and tempered growth expectations for 2026. Tariff threats and client hesitation are impacting investments, with Intel announcing 2,400 job cuts. Despite this, ASML remains confident in long-term growth, but short-term visibility challenges persist.

ASML’s order intake of EUR 5.5 billion included EUR 2.3 billion for EUV tools, with logic orders dominating at 84%. TSMC likely ordered 8-10 EUV tools, with more expected as they ramp up production. Sales forecasts predict 5% growth in 2026 and low-teens growth in 2027 and 2028, but uncertainty remains high over the next two quarters.

Read more at Morningstar: Reset of Expectations Sends Shares Lower; Fair Value Estimate Trimmed