ASML shares tumble amid trade tensions and growth uncertainty
'We continue to see increasing uncertainty driven by macroeconomic and geopolitical developments,' Fouquet said in a statement on ASML's quarterly results on Wednesday. 'Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage.'
ASML's shares fell as much as 7.1 per cent to €655.70 in Amsterdam on Wednesday, the biggest decline since April. They have fallen 33 per cent in the last year.
Chief financial officer Roger Dassen highlighted the threat of tariffs for new systems and parts sent to the US, as the threat of other countries reacting with reciprocal measures. Tariffs could also negatively hit ASML's gross margin, he said in a video accompanying the results.
Semiconductors are currently exempt from US tariffs, but there is uncertainty over how chipmaking equipment will be affected. The administration of US President Donald Trump's chaotic roll-out has roiled markets and made planning major spending difficult.
01:02
Nvidia to resume selling H20 graphic processing chips to China in boon for AI
Nvidia to resume selling H20 graphic processing chips to China in boon for AI
'This is a more negative comment than many were expecting at this stage,' Barclays analysts Simon Coles and Rohan Bahl said in a note.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
6 hours ago
- South China Morning Post
UK defends Online Safety Act after X claims it threatens free speech
The British government defended the Online Safety Act after US tech billionaire Elon Musk's X said the legislation was threatening free speech. In a post titled What Happens When Oversight Becomes Overreach, the platform, formerly known as Twitter, outlined criticism of the act and the 'heavy-handed' UK regulators. The government countered that it is 'demonstrably false' that the Online Safety Act compromises free speech and said it is not designed to censor political debate. Under rules that came into effect on July 25, online platforms must take steps to prevent children accessing harmful content such as pornography or material that encourages suicide. This includes a new duty for online providers to reduce the risk that users encounter illegal content as well as age verification measures in the UK to access pornographic content. 'As a result, the act's laudable intentions are at risk of being overshadowed by the breadth of its regulatory reach. Without a more balanced, collaborative approach, free speech will suffer,' X said.
South China Morning Post
8 hours ago
- South China Morning Post
US, Nato seek to supply Ukraine with weapons paid for by allies
The US and Nato are working on a novel approach to supply Ukraine with weapons using funds from Nato countries to pay for the purchase or transfer of US arms, according to three sources familiar with the matter. Advertisement The renewed transatlantic cooperation on Ukraine comes as US President Donald Trump has expressed frustration with Moscow's ongoing attacks on its neighbour. Trump, who initially took a more conciliatory tone toward Russia as he tried to end the more than three-year war in Ukraine, has threatened to start imposing tariffs and other measures if Moscow shows no progress toward ending the conflict by August 8. The president said last month the US would supply weapons to Ukraine, paid for by European allies, but did not indicate how this would be done. Nato countries, Ukraine, and the United States were developing a new mechanism that would focus on getting US weapons to Ukraine from the Priority Ukraine Requirements List, known by the acronym PURL, the sources said. Advertisement Ukraine would prioritise the weapons it needs in tranches of roughly US$500 million, and Nato allies – coordinated by Nato Secretary General Mark Rutte – would then negotiate among themselves who would donate or pay for items on the list.
South China Morning Post
14 hours ago
- South China Morning Post
US, Nato seek to supply Ukraine with weapons paid for by allies, target US$10 billion
The US and Nato are working on a novel approach to supply Ukraine with weapons using funds from Nato countries to pay for the purchase or transfer of US arms, according to three sources familiar with the matter. The renewed transatlantic cooperation on Ukraine comes as US President Donald Trump has expressed frustration with Moscow's ongoing attacks on its neighbour. Trump, who initially took a more conciliatory tone toward Russia as he tried to end the more than three-year war in Ukraine, has threatened to start imposing tariffs and other measures if Moscow shows no progress toward ending the conflict by August 8. The president said last month the US would supply weapons to Ukraine, paid for by European allies, but did not indicate how this would be done. Nato countries, Ukraine, and the United States were developing a new mechanism that would focus on getting US weapons to Ukraine from the Priority Ukraine Requirements List, known by the acronym PURL, the sources said. Ukraine would prioritise the weapons it needs in tranches of roughly US$500 million, and Nato allies – coordinated by Nato Secretary General Mark Rutte – would then negotiate among themselves who would donate or pay for items on the list.
