ASML leads semi maker stocks lower for second consecutive session

ASML Holding (NASDAQ:ASML) shares slumped 6.4% by the time markets closed on Wednesday, one day after it accidentally released its financial report and outlook a day early.

Other semiconductor equipment makers followed suit for the second day in a row as well. Applied Material (NASDAQ:AMAT) and KLA Corporation (NASDAQ:KLAC) both slid about 3.5% while Lam Research (NASDAQ:LRCX) fell 3%. Nova Ltd. (NVMI) dropped 5%.

ASML, which produces the planet’s most advanced semiconductor equipment, reduced its 2025 full-year sales outlook by 15%. Analysts connected the reduction in part to stricter export controls in the Netherlands for advanced semiconductor manufacturing equipment.

After China accounted for 49% of ASML’s sales during the second quarter of 2024, those sales are expected to account for 20% in 2025.

ASML also pointed to continued low chip demand in the automotive and industrial sectors.

“With regards to market condition, while we continue to view AI as a key driver of the industry recovery with potential upside, we see other segments recovering more slowly than anticipated,” said ASML CEO Christophe Fouquet during the company’s earnings call. “The recovery will extend well into 2025, which is leading to customer cautiousness and some push outs in their investment.”

“We all see that there is speculation around export controls,” added ASML Chief Financial Officer Roger Dassen. “And also that is a driver for us to take a more cautious view on the China sales.”

However, most semiconductor stocks recovered on Wednesday, including Nvidia (NASDAQ:NVDA) which climbed 3%. Micron Technology (NASDAQ:MU) jumped nearly 5% while Marvell Technology (NASDAQ:MRVL) rose 2.8%. Arm Holdings gained 1.2%, while Taiwan Semiconductor Manufacturing (TSM), Analog Devices (ADI), Texas Instruments (TXN), Microchip Technology (MCHP) and Broadcom (AVGO) all increased by less than 1%.

AMD (AMD) slid 0.3%, while Intel (INTC) and Qualcomm (QCOM) both fell 1.5%.