Latest news with #ASMLHoldingN.V.
The Mainichi
17-07-2025
- Business
- The Mainichi
Tokyo stocks end higher after robust TSMC earnings
TOKYO (Kyodo) -- Tokyo stocks ended higher Thursday, as heavyweight chip shares trimmed earlier losses after robust earnings from Taiwan Semiconductor Manufacturing Co. helped ease concern about the outlook on the business environment. The 225-issue Nikkei Stock Average rose 237.79 points, or 0.60 percent, from Wednesday at 39,901.19. The broader Topix index finished 20.41 points, or 0.72 percent, higher at 2,839.81. On the top-tier Prime Market, gainers were led by service, pharmaceutical, information and communication issues. The U.S. dollar climbed to the upper 148 yen range in Tokyo, as the yen was sold amid concerns over possible fiscal deterioration through expansionary policies if Japan's ruling parties lose their majority in the House of Councillors in Sunday's election, dealers said. The Nikkei stock index was initially pressured by chip-related shares after ASML Holding N.V., a major global supplier of chip-making equipment, flagged concern about its 2026 growth outlook on Wednesday amid macroeconomic and geopolitical uncertainty. However, chip issues erased much of their losses after the world's largest contract chipmaker released solid earnings in the afternoon, helping to lift the market. "While stocks have been directionless this week (ahead of the election and earnings releases), the market largely reflected the moves of chip shares," said Yuta Okamoto, market analyst at Tokai Tokyo Intelligence Laboratory Co. Among notable gainers, land transportation issues drew buying after data showed Wednesday that Japan saw a record 21.5 million foreign visitors in the first half of 2025, while the number for June hit the highest ever for the month. Meanwhile, Seven & i Holdings ended down 9.2 percent at 2,007.5 yen after Canadian retailer Alimentation Couche-Tard Inc. said it has withdrawn its $47 billion buyout proposal.
Euronews
09-07-2025
- Business
- Euronews
Here's why a strong euro could be bad news for European companies
The sharp strengthening of the euro seen so far in 2025 could begin to weigh on European corporate profits, with the impact likely to surface as the second-quarter earnings season gets underway. According to a recent analysis by Bank of America, a firmer euro — alongside softening sales — may depress earnings for the STOXX 600 index, potentially marking the weakest performance in five quarters. The euro-dollar exchange rate has risen by 9% over the last quarter, reaching a four-year high and marking the strongest quarterly performance since late 2022. Meanwhile, the value of the euro against a basket of foreign currencies, tracked by the ECB, rose by 4.6% in the last quarter, reaching its highest level on record on 1 July. As the second-quarter earnings season begins in Europe, the analyst consensus from Wall Street points to a 3% decline in earnings per share (EPS) compared to the same period last year. That drop, underpinned by a 3% contraction in sales, reflects both faltering demand and adverse foreign exchange dynamics. Energy and consumer discretionary sectors (industries that sell non-essential goods) are expected to be the biggest drags on index earnings, more than offsetting continued resilience from healthcare. After two quarters of positive growth, earnings from cyclical sectors excluding financials are projected to return to contraction, with EPS forecasts cut by 2.5% in the past month alone. 'Q2 earnings growth for cyclicals (ex-financials) is expected to turn negative again after two quarters of positive growth,' said Andreas Bruckner, equity strategist at Bank of America. 'Positive euro area macro surprises imply solid EPS beats, but euro strength is a risk,' he added. While financials had supported earnings in prior quarters, their contribution is expected to be muted this time. Eurozone macroeconomic surprises were slightly positive in the second quarter, typically a sign of decent earnings performance to come. Analysts have already slashed European earnings forecasts for 2025, citing currency appreciation and increasing trade barriers as key risks. Since early April, consensus EPS growth expectations for both 2025 and 2026 have been cut by around 5%, with 17 of 20 major sectors seeing downgrades — autos being the hardest hit. Expectations for 2025 EPS growth have halved, from 6% to 3%, and the 12-month forward EPS for the STOXX 600 now sits 3% below its all-time high recorded in March. Bank of America forecasts a 4% year-on-year decline in 2025 EPS, as global trade headwinds, tariff effects and slowing investment in the US weigh on European exporters and multinationals. Three key earnings reports to watch Nearly two thirds of European corporates are due to report earnings by the end of July. Among them, three bellwether companies are likely to dictate much of the market's tone for the quarter: ASML Holding N.V. will report on 16 July. Europe's largest semiconductor firm, with a market capitalisation of around €264 billion, is expected to post a 32% rise in EPS to €5.30, with revenues forecast at €7.61 billion, up 23% year-on-year. Investors will scrutinise results for evidence that AI-related demand continues to shield the company from broader geopolitical and trade pressures. Despite the AI tailwind, ASML shares have remained flat in 2025. SAP SE, Europe's largest listed company with a €308 billion market cap, reports on 22 July. Analysts forecast EPS of €1.46, up from €1.10 a year ago, with revenues expected to climb to €9.15 billion from €8.29 billion. Shares in the software giant are up around 11.5% so far this year, buoyed by investor optimism around digital transformation and cloud adoption. UniCredit SpA will be the first major eurozone bank to report second-quarter results, also on 22 July. Markets will be focused on how banks are navigating the ECB's rate-cutting cycle. With the central bank having lowered the deposit facility rate to 2% in June, analysts expect UniCredit's EPS to dip by 3.5% year-over-year to €1.55, with revenue down 3% to €6.16 billion. Shares of UniCredit have surged 56% year-to-date, matching their entire 2024 gain in just over six months.
Yahoo
17-04-2025
- Business
- Yahoo
Is ASML Holding (ASML) Worth Buying on the China H20 Chip Sale Ban?
We recently published a list of . In this article, we are going to take a look at where ASML Holding N.V. (NASDAQ:ASML) stands against other semiconductor stocks tumbling on China H20 chip sale ban. Semiconductor manufacturers are at the forefront of the technological battle, especially in the context of China's rapid tech developments. One would have thought President Trump would take it easy on the chipmakers owing to their critical position in the US and global tech infrastructure. However, investors are now finding out that semi stocks aren't immune to tariffs, with the latest round of tariffs expected to cost manufacturers around $1 billion. This cost will be incurred through lost sales, increased regulatory compliance, and elevated supply chain costs. Uncertainty regarding the exact details of the tariffs continues to cause chaos in the market. Chip stocks are sliding as the leading chipmaker, led by Jensen Huang, finds its H20 chips banned from export to China. As the leading chipmaker tries to steer its way out of the crisis, other companies that rely on this giant for business are also trying to figure out what to do. We decided to take a look at such stocks and see if they offer value. Remember that the H20 chips were made specifically for China, and a ban on selling them is only a temporary headwind, not something that threatens the company's moat. To come up with the list of semiconductor stocks worth buying on the China H20 chip sale ban, we considered stocks that are an integral part of the semiconductor supply chain and ranked them by hedge fund interest in their stocks. A technician in a clean room working on a semiconductor device, illuminated by the machines. Number of Hedge Fund Holders: 86 ASML Holding N.V. is a lithography solutions provider for the production, upgrading, development, marketing, servicing, and sales of advanced semiconductor equipment systems. The company provides metrology, inspection, and lithography systems. The stock is taking a hit after the US government placed restrictions on the export of Jensen Huang-led company's H20 chips to China. The first quarter bookings also missed estimates, adding to the pessimism surrounding the stock as well as the broader industry. On the bright side, the 2025 net sales outlook remained unchanged, suggesting the company has a plan to deal with the export restrictions it frequently faces. The total revenue for 2025 is expected to land somewhere between 30 billion euros and 35 billion euros. This is what the CEO of the company had to say about the ongoing uncertainty: 'There's this new uncertainty around tariffs. And like many experts, many businesses are explaining this is, of course, something that we don't know how to quantify yet. But this is adding definitely uncertainty on the long term.' It is worth noting that the management sees stability in expected revenue despite cautioning that revenue from China will go down moving forward. Overall, ASML ranks 4th on our list of semiconductor stocks tumbling on China H20 chip sale ban. While we acknowledge the potential of ASML as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ASML but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
