"Demand Dips"? ASML Shares Plummet Following Poor Third Quarter Results and Reduced Forecast
ASML Holding (ASML) experienced a significant drop in shares on Tuesday morning, following a third-quarter bookings miss that fell short of the average analyst estimates. In addition, the company's forecasts were dramatically reduced. This news caused a negative reaction on Nasdaq, as the narrative of 'insane demand' for AI begins to unravel.
ASML, a Dutch company that manufactures the machinery used by key players in the semiconductor industry, reported disappointing third-quarter results.
Here's a detailed breakdown of the results (information provided by Bloomberg):
- Bookings: EU2.63 billion, -53% q/q, estimated at EU5.39 billion (Bloomberg Consensus)
- Net sales: EU7.47 billion, +20% q/q, estimated at EU7.17 billion
- Gross margin: 50.8% vs. 51.5% q/q, estimated at 50.7%
- Net income: EU2.08 billion, +32% q/q, estimated at EU1.91 billion
- Cash and other: EU4.99 billion, -0.7% q/q, estimated at EU4.86 billion
ASML reduced its 2025 net sales and gross margin guidance due to a decrease in AI demand.
The forecast for the fourth quarter is as follows:
- Predicted net sales: EU8.8 billion to EU9.2 billion, estimated at EU8.95 billion
- Predicted gross margin: 49% to 50%, estimated at 50.5%
The 2025 forecast includes:
- Predicted net sales: EU28 billion, estimated at EU27.71 billion
- Predicted gross margin: 51% to 53%, previously projected at about 54% to 56%, estimated at 53.9%
- Predicted net sales: EU30 billion to EU35 billion, previously projected at about EU30 billion to EU40 billion, estimated at EU35.94 billion
In New York, ASML shares took a significant hit, dropping by -16%.
Nasdaq also experienced a negative impact.
This story is still developing...
Bottom Line
The unexpected dip in ASML's third-quarter results and the subsequent reduction in forecasts have caused a significant reaction in the market. The 'insane demand' narrative for AI appears to be unraveling, leading to a drop in ASML shares and a negative impact on Nasdaq. This situation raises questions about the future of AI demand and the potential implications for the semiconductor industry. What are your thoughts on this development? Feel free to share this article with your friends and discuss. Remember, you can sign up for the Daily Briefing, which is delivered every day at 6pm.
"Demand Dips"? ASML Shares Plummet Following Poor Third Quarter Results and Reduced Forecast
ASML Holding (ASML) experienced a significant drop in shares on Tuesday morning, following a third-quarter bookings miss that fell short of the average analyst estimates. In addition, the company's forecasts were dramatically reduced. This news caused a negative reaction on Nasdaq, as the narrative of 'insane demand' for AI begins to unravel.
ASML, a Dutch company that manufactures the machinery used by key players in the semiconductor industry, reported disappointing third-quarter results.
Here's a detailed breakdown of the results (information provided by Bloomberg):
- Bookings: EU2.63 billion, -53% q/q, estimated at EU5.39 billion (Bloomberg Consensus)
- Net sales: EU7.47 billion, +20% q/q, estimated at EU7.17 billion
- Gross margin: 50.8% vs. 51.5% q/q, estimated at 50.7%
- Net income: EU2.08 billion, +32% q/q, estimated at EU1.91 billion
- Cash and other: EU4.99 billion, -0.7% q/q, estimated at EU4.86 billion
ASML reduced its 2025 net sales and gross margin guidance due to a decrease in AI demand.
The forecast for the fourth quarter is as follows:
- Predicted net sales: EU8.8 billion to EU9.2 billion, estimated at EU8.95 billion
- Predicted gross margin: 49% to 50%, estimated at 50.5%
The 2025 forecast includes:
- Predicted net sales: EU28 billion, estimated at EU27.71 billion
- Predicted gross margin: 51% to 53%, previously projected at about 54% to 56%, estimated at 53.9%
- Predicted net sales: EU30 billion to EU35 billion, previously projected at about EU30 billion to EU40 billion, estimated at EU35.94 billion
In New York, ASML shares took a significant hit, dropping by -16%.
Nasdaq also experienced a negative impact.
This story is still developing...
Bottom Line
The unexpected dip in ASML's third-quarter results and the subsequent reduction in forecasts have caused a significant reaction in the market. The 'insane demand' narrative for AI appears to be unraveling, leading to a drop in ASML shares and a negative impact on Nasdaq. This situation raises questions about the future of AI demand and the potential implications for the semiconductor industry. What are your thoughts on this development? Feel free to share this article with your friends and discuss. Remember, you can sign up for the Daily Briefing, which is delivered every day at 6pm.
