ASML Shares Drop Over 6% as U.S. Tariff Warning Shakes Investor Confidence

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Shares of ASML Holding NV plunged more than 6.5% on Wednesday, leading a broad sell-off in European technology stocks, after the Dutch semiconductor equipment giant warned that new U.S. tariffs are injecting significant uncertainty into its business outlook for 2025 and beyond.

The warning came as the company reported weaker-than-expected first-quarter bookings and issued a subdued forecast for the second quarter.

ASML, a critical supplier to the global semiconductor industry, said net bookings for Q1 stood at €3.9 billion, well below analyst expectations. Revenue guidance for Q2 was set at €7.2–€7.7 billion, also falling short of market forecasts.

The tariff concerns stem from newly imposed U.S. measures affecting critical high-tech exports and imports.

ASML’s Chief Financial Officer Roger Dassen highlighted four specific areas of impact: restrictions on U.S. shipments, increased tariffs on imported parts and tools, rising material costs due to trade barriers, and the looming threat of retaliatory tariffs from other global trading partners.

“The new tariff environment creates a more challenging landscape for our supply chain and cost structure,” said Dassen. “We are monitoring developments closely and assessing the implications on our long-term strategy.”

The news spooked investors, sending ASML’s shares tumbling and dragging down the broader European tech sector. The STOXX 600 Technology Index dropped 3.1%, its sharpest daily decline in months.

Other semiconductor-related stocks, including ASM International, BE Semiconductor, Soitec, Infineon Technologies, and STMicroelectronics, fell between 2.7% and 4.3%.

Analysts say the market reaction underscores broader investor concerns about geopolitical risks and how they could ripple through the global chip supply chain.

“ASML is a bellwether for the semiconductor industry,” said one European tech analyst. “When ASML sounds the alarm, investors take note.”

Despite the near-term headwinds, ASML remains optimistic about long-term demand, particularly in the context of booming investment in artificial intelligence.

The company continues to see strong interest in its high-NA EUV lithography systems—cutting-edge tools used in advanced chip production by industry giants like Nvidia, TSMC, and Apple.

ASML executives have reiterated that 2025 will remain a “transition year” as semiconductor makers recalibrate their capacity plans.

However, with global chip demand projected to accelerate due to AI, automotive, and industrial applications, the company remains confident in its leadership position.

Still, Wednesday’s market drop is a stark reminder of the vulnerability of even the most advanced tech players to shifting trade dynamics and regulatory landscapes.

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