Shares in Dutch semiconductor services company ASML (ASML) slumped nearly 9% in pre-market trading after warning investors that growth may be hard to come by in 2026.
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Increased Uncertainty
Reporting its Q2 figures today, the group’s chief executive Christophe Fouquet said that its AI customers fundamentals were strong heading into 2026. However, he added that at the same time, it continues to see increasing uncertainty driven by macro-economic and geopolitical developments.
“Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage,” he said.
That comment was in stark contrast to those made at an investor event last November when ASML declared that 2026 would be a growth year for the business. But the company is well aware of how vulnerable it is to uncertainty.
He did not say what the economic and global challenges were, but they are likely to refer to uncertainty around President Trump’s tariff policies and the impact on both the EU and key market China.
Indeed, the President recently sent a letter to the EU threatening 30% tariffs on imports from the bloc beginning August 1. However, these could be averted given that trade talks between Brussels and Washington are continuing.
This is important as ASML sells its services to U.S. customers such as Intel (INTC) and other main sector players such as TSMC (TSM).
Second Quarter Hope
ASML also forecast third-quarter revenue of between €7.4 billion and €7.9 billion, which was below market expectations of €8.3 billion.
It also expects full-year 2025 net sales to grow by 15%, narrowing its guidance from a previously announced forecast of between €30 billion to €35 billion.
There was better news, however, in its second quarter figures with net sales of €7.7 billion compared with expectations of €7.52 billion. Its net profit came in at €2.29 billion against the €2.04 billion expected.
Net bookings were another plus coming in at €5.5 billion compared with expectations of €4.19 billion. Particularly in demand was its high-end extreme ultraviolet lithography systems that let semiconductor manufacturers print the most intricate layers on chips.
Is ASML a Good Stock to Buy Now?
On TipRanks, ASML has a Moderate Buy consensus based on 2 Buy and 4 Hold ratings. Its highest price target is $965. ASML stock’s consensus price target is $887 implying a 7.77% upside.
