ASML Shares Plunge as Bookings Miss Signals Chipmaker Woes

(Bloomberg) -- ASML Holding NV’s shares plunged the most in 26 years after it booked only about half the orders analysts expected, a startling slowdown for one of the bellwethers of the semiconductor industry.

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The Dutch company, which makes the world’s most advanced chip-making machines, lowered its guidance for 2025 and reported bookings of €2.6 billion ($2.8 billion) in the third quarter, missing an average estimate of €5.39 billion by analysts surveyed by Bloomberg.

The results caused ASML shares to plunge 16% in Amsterdam, the biggest decline since June 12, 1998. It also triggered a broad downturn in chip-related stocks, with Nvidia Corp. falling as much as 6.8% and the benchmark Philadelphia Semiconductor Index sliding as much as 4.8%.

“It now appears the recovery is more gradual than previously expected. This is expected to continue in 2025, which is leading to customer cautiousness,” Chief Executive Officer Christophe Fouquet said in the statement.

The weak results were amplified by the company mistakenly releasing its financial results a day earlier than scheduled. ASML published the release, which was expected on Wednesday, prematurely “due to a technical error,” it said in a separate statement.

The chip industry is experiencing strangely uneven times. In areas such as artificial intelligence accelerators, companies like Nvidia can’t keep up with demand. But in other sectors, including automotive and industrial, it’s in a prolonged slump with customers cutting back orders because they have too much inventory. Intel Corp. is cutting expenses in a restructuring that includes delays to planned factories in Germany and Poland, while memory chipmakers such as Samsung Electronics Co. and SK Hynix Inc. are also being careful with spending.

“While bookings are typically lumpy, we have to concede given lowered guidance that it’s looking like the delayed cyclical recovery and specific customer challenges are weighing heavily on ASML’s 2025 expectations,” said Bernstein analyst Sara Russo.

ASML lowered its guidance for 2025 total net sales to between €30 billion and €35 billion, compared to as much as €40 billion previously. Next year, the company expects a gross margin between 51% and 53%, compared to a prior range between 54% and 56%, mainly due to delayed timing for its top-end extreme ultraviolet machines, Fouquet said in the statement.