Chipmaking equipment giant ASML misses Q1 order expectations

(Sharecast News) - ASML, the world's leading supplier of advanced semiconductor manufacturing equipment, reported weaker-than-expected orders for the first quarter of 2025, raising concerns about the impact of escalating US trade policies on the global chip industry. The Dutch company posted net bookings of €3.94bn for the quarter, falling short of analyst expectations of nearly €4.9bn and significantly below the prior quarter's €7.09bn.

Shares dropped 6% in response, extending a broader decline of over 30% over the past year.

While ASML's net sales of €7.74bn and net profit of €2.36bn were largely in line with market forecasts, the sharp drop in new orders highlighted growing market caution.

Chief executive officer Christophe Fouquet attributed the shortfall in part to fresh tariff announcements from the United States, which he said had "increased uncertainty" around customer demand and macroeconomic conditions.

The company maintained its full-year revenue forecast of €30bn to €35bn, but acknowledged that market dynamics could push results toward the lower end of that range.

Fouquet reiterated that demand for ASML's equipment remained fundamentally strong, with artificial intelligence continuing to drive long-term growth.

However, he noted that the evolving trade environment could create uneven impacts across ASML's customer base.

Recent comments from US officials had fuelled confusion over which tech products would be subject to new tariffs.

A federal investigation into national security concerns tied to semiconductor imports was also underway, raising the prospect of broader trade restrictions.

The developments have sparked volatility across global chip stocks and added to uncertainty for suppliers like ASML, whose lithography systems are essential to advanced chip production.

ASML's leadership emphasised that it was too early to assess the full impact of potential tariffs, though chief financial officer Roger Dassen highlighted risks not only to system shipments but also to component sourcing and US-based manufacturing operations.

Despite such headwinds, Fouquet said customer conversations still supported a growth outlook for 2025 and 2026.

At 1133 CEST (1033 BST), shares in ASML Holdings were down 5.02% in Amsterdam, at €575.00.

Reporting by Josh White for Sharecast.com.