Supplier of chipmaking equipment ASML retracted its growth forecast for the coming year on Wednesday, sending shares down around 7% in morning trading in Amsterdam.
“The level of uncertainty is increasing, mostly due to macroeconomic and geopolitical considerations. And that includes, of course, tariffs,” said CEO Christophe Fouquet. “Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage.”
The warning came despite the fact that the Dutch firm saw sales and bookings rise above analysts’ expectations during the second quarter.
Sales rose 23% to €7.7 billion, while net bookings came in at €5.5bn. Net income was at €2.3bn.
For the third-quarter, ASML predicted net sales between €7.4bn and €7.9bn, falling short of estimates, and a gross margin between 50% and 52%.
The firm also forecast 15% revenue growth for the year ahead.
A boom in artificial intelligence is fuelling demand for ASML’s semiconductor-making machines, which are needed to power AI technologies.
Last week, chipmaker Nvidia — a firm that relies on ASML products — became the first company in the world to reach a market value of $4 trillion.
So far, the extent to which ASML will be affected by US tariffs and retaliatory duties is unclear. Semiconductors are currently exempt from Trump’s duties although it’s not yet known whether chipmaking machines will receive the same leniency.
Easing tensions between the US and China are also helping Nvidia, which in turn bodes well for ASML. On Tuesday, Nvidia said it would start selling its H20 AI chip in China again after the Trump administration relaxed export restrictions. The move is a U-turn for the government, which in April banned sales of the chip to China, linked to concerns that the technology could be used for military purposes.
ASML also faces restrictions on sending certain advanced products to China. There has been no suggestion that these measures, imposed by the Dutch government, will be lifted.
“ASML cites the macroeconomic environment and tariffs having an impact on the orders. More specifically, it is more likely uncertainty from China, memory capex uncertainty and the struggles at Intel and Samsung that are more likely to be hampering things,” said Ben Barringer, global technology analyst at Quilter Cheviot.
Intel and Samsung, two ASML customers, are facing financial headwinds, with the latter reporting its first fall in profit in around two years last week.
Barringer continued: “Ultimately, this is a speed bump for what remains a high-quality company. It still has a big backlog so growth should still pull through”.
