ASML published its third-quarter figures yesterday. Orders decreased significantly from €5.6 billion to €2.6 billion, leading to a historic share price drop and the temporary halting of trading. After the publication of the quarterly figures, ASML shares fell 16%. It appeared to be a technical glitch that caused the premature release of the financials, an ASML spokesperson told NU.nl.
The incident highlights the sensitivity of financial markets to unexpected information and has a clear impact both inside and outside the stock market. The error led to financial consequences but also raised questions about internal processes at the company.
Underlying problems come to light
The quarterly figures show that demand for ASML’s chip machines fell sharply. The total value of orders in the third quarter was €2.6 billion, down by half from the previous quarter. ASML indicates that slowdowns in “other market segments” are taking longer than previously expected.
Long-term impact
CEO Christophe Fouquet is optimistic about the role ASML can play in the rise of artificial intelligence, but expressed less positive views on the short-term outlook. The company expects current trends to continue into 2025. This news, combined with the sudden stock market drop, shook investor and analyst confidence, leading to concerns about ASML’s future performance.
ASML is at the center of international trade tensions, particularly due to restrictions imposed by the United States on the export of certain machines to China. Although EUV machines have never been exported to China, the recent ban on the older DUV machines has put additional pressure on the company’s sales forecasts.
Stock market reacts
ASML’s significant share price drop had direct consequences not only for the company itself but also for the broader chip industry. American chip giants such as Nvidia and Intel also saw their shares fall in response to ASML’s unfortunate misstep. This highlights the interdependence within the technology industry and the potential chain reactions that can follow such an event.
The events surrounding ASML are not only relevant to investors and analysts but have a broader societal impact. The price loss of such an important technology company can spill over into pension funds and investment portfolios, indirectly affecting many. This incident shows how closely intertwined the economic health of companies and the financial well-being of individuals are.
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