ASML has lowered its revenue outlook, indicating reduced demand for chip-making equipment. Analysts believe this doesn't suggest a decline in the semiconductor industry but rather points to overcapacity in manufacturing facilities. The demand for chips has been strong, but the overproduction during past successful quarters has led to a mismatch in supply and demand, causing ASML to lower forecasts.
ASML's revenue outlook suggests caution, but it does not indicate a weak semiconductor market overall. The company remains a leader in its field, and some analysts believe that lower stock prices may present a buying opportunity.
Oct 15, 2024, 11:30 AM
AMSTERDAM (Reuters) -Computer chip equipment maker ASML on Tuesday reported weak bookings and cut 2025 sales forecasts in third quarter earnings published early on its website, sending its shares down 15% by 1500 GMT. "We expect our 2025 total net sales to grow to a range between 30-35 billion euros, which is the lower half of the range that we provided at our 2022 Investor Day," Chief Executive Christophe Fouquet said in a statement. However, the company's bookings came in at 2.6 billion euros, well below forecasts that had ranged between 4 billion euros and 6 billion euros.
Sep 6, 2024, 4:34 PM
Chip stocks led the tech sector lower on Friday to cap what has been a volatile first week of September.
Sep 6, 2024, 1:51 PM
Chip stocks led the tech sector lower on Friday to cap what has been a volatile first week of September.