Latest news with #Fouquet
Kuwait Times
6 days ago
- Business
- Kuwait Times
Dutch giant ASML sees profits rise but warns on 2026
THE HAGUE: Dutch tech giant ASML said Wednesday it booked higher net profits in the second quarter of 2025 compared with the same period last year but warned that geopolitical headwinds had darkened the 2026 outlook. The firm, which makes cutting-edge machines for the manufacture of semiconductors, said net profits came in at 2.3 billion euros, compared with 1.6 billion euros in the second quarter of last year. However, it warned that the growth outlook for next year was somewhat less rosy than before. 'Looking at 2026, we see that our AI customers' fundamentals remain strong,' said Chief Executive Officer Christophe Fouquet in a statement. 'At the same time, we continue to see increasing uncertainty driven by macro-economic and geopolitical developments,' he cautioned.'Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage.' Investors appeared to give more weight to the gloomy outlook for 2026 than the positive quarterly data, with ASML stock down six percent at the opening bell. When Fouquet presented first-quarter results in April, he also warned of 'increased uncertainty' due to tariffs with the situation likely to 'remain dynamic for a while.' However, he had reiterated his belief at that stage that 2025 and 2026 would be 'growth years.' The firm said its net sales in the second quarter of 2025 came in at 7.7 billion euros, at the upper end of its forecasts of between 7.2 and 7.7 billion euros. Net bookings, the figures most closely watched in the markets as a predictor of future performance, were 5.6 billion euros, compared to 3.9 billion euros in the first quarter. Fouquet said he expected sales in the third quarter to come in between 7.4 billion and 7.9 billion euros. ASML is a key cog in the global economy, as the semiconductors its machines help to make can power everything from smartphones to missiles. Longer term, ASML believes the rapidly expanding AI market will push its annual sales up to between 44 and 60 billion euros by 2030. It expects a 15-percent increase in sales this year to around 32.5 billion euros. 'I think long term, the semiconductor market remains very strong,' said Fouquet. 'And I think a lot of people say that AI is really a great opportunity. We have seen again the fundamentals around AI to be very, very strong.' The semiconductor industry has been buffeted by geopolitical headwinds in recent years. Washington has sought to curb exports of state-of-the-art chips to China, concerned that they could be used to advance Beijing's military systems and otherwise undermine American dominance in AI. In May, Trump's administration rescinded some export controls on semiconductors. But Washington also unveiled fresh guidelines warning firms that using Chinese-made high-tech AI semiconductors, specifically tech giant Huawei's Ascend chips, would put them at risk of violating US export controls. Beijing described the warnings as 'typical unilateral bullying and protectionism.' On Tuesday, US tech giant Nvidia announced it would resume sales of its H20 artificial intelligence chips to China, after Washington pledged to remove licensing curbs that had halted exports. — AFP
Qatar Tribune
7 days ago
- Business
- Qatar Tribune
Dutch giant ASML sees profits rise but warns on 2026
Agencies Dutch tech giant ASML said Wednesday it booked higher net profits in the second quarter of 2025 compared with the same period last year but warned that geopolitical headwinds had darkened the 2026 outlook. The firm, which makes cutting-edge machines for the manufacture of semiconductors, said net profits came in at 2.3 billion euros, compared with 1.6 billion euros in the second quarter of last year. However, it warned that the growth outlook for next year was somewhat less rosy than before. 'Looking at 2026, we see that our AI customers' fundamentals remain strong,' said Chief Executive Officer Christophe Fouquet in a statement. 'At the same time, we continue to see increasing uncertainty driven by macro-economic and geopolitical developments,' he cautioned. 'Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage.' Investors appeared to give more weight to the gloomy outlook for 2026 than the positive quarterly data, with ASML stock down six percent at the opening bell. When Fouquet presented first-quarter results in April, he also warned of 'increased uncertainty' due to tariffs with the situation likely to 'remain dynamic for a while.' However, he had reiterated his belief at that stage that 2025 and 2026 would be 'growth years.' The firm said its net sales in the second quarter of 2025 came in at 7.7 billion euros, at the upper end of its forecasts of between 7.2 and 7.7 billion euros. Net bookings, the figures most closely watched in the markets as a predictor of future performance, were 5.6 billion euros, compared to 3.9 billion euros in the first quarter. Fouquet said he expected sales in the third quarter to come in between 7.4 billion and 7.9 billion euros. ASML is a key cog in the global economy, as the semiconductors its machines help to make can power everything from smartphones to missiles. Longer term, ASML believes the rapidly expanding AI market will push its annual sales up to between 44 and 60 billion euros by 2030. It expects a 15-percent increase in sales this year to around 32.5 billion euros. 'I think long term, the semiconductor market remains very strong,' said Fouquet. 'And I think a lot of people say that AI is really a great opportunity. We have seen again the fundamentals around AI to be very, very strong.' The semiconductor industry has been buffeted by geopolitical headwinds in recent years. Washington has sought to curb exports of state-of-the-art chips to China, concerned that they could be used to advance Beijing's military systems and otherwise undermine American dominance in AI. In May, Trump's administration rescinded some export controls on semiconductors. But Washington also unveiled fresh guidelines warning firms that using Chinese-made high-tech AI semiconductors, specifically tech giant Huawei's Ascend chips, would put them at risk of violating US export controls. Beijing described the warnings as 'typical unilateral bullying and protectionism.' On Tuesday, US tech giant Nvidia announced it would resume sales of its H20 artificial intelligence chips to China, after Washington pledged to remove licensing curbs that had halted exports.
Japan Today
7 days ago
- Business
- Japan Today
Dutch tech giant ASML sees profits rise but warns on 2026
By Richard CARTER Dutch tech giant ASML said Wednesday it booked higher net profits in the second quarter of 2025 compared with the same period last year but warned that geopolitical headwinds had darkened the 2026 outlook. The firm, which makes cutting-edge machines for the manufacture of semiconductors, said net profits came in at 2.3 billion euros, compared with 1.6 billion euros in the second quarter of last year. However, it warned that the growth outlook for next year was somewhat less rosy than before. "Looking at 2026, we see that our AI customers' fundamentals remain strong," said Chief Executive Officer Christophe Fouquet in a statement. "At the same time, we continue to see increasing uncertainty driven by macro-economic and geopolitical developments," he cautioned. "Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage." When Fouquet presented first-quarter results in April, he also warned of "increased uncertainty" due to tariffs with the situation likely to "remain dynamic for a while." However, he had reiterated his belief at that stage that 2025 and 2026 would be "growth years." The firm said its net sales in the second quarter of 2025 came in at 7.7 billion euros, at the upper end of its forecasts of between 7.2 and 7.7 billion euros. Net bookings, the figures most closely watched in the markets as a predictor of future performance, were 5.6 billion euros, compared to 3.9 billion euros in the first quarter. Fouquet said he expected sales in the third quarter to come in between 7.4 billion and 7.9 billion euros. AI market 'very strong' ASML is a key cog in the global economy, as the semiconductors its machines help to make can power everything from smartphones to missiles. Longer term, ASML believes the rapidly expanding AI market will push sales up to between 44 and 60 billion euros by 2030. "I think long term, the semiconductor market remains very strong," said Fouquet. "And I think a lot of people say that AI is really a great opportunity. We have seen again the fundamentals around AI to be very, very strong." The semiconductor industry has been buffeted by geopolitical headwinds in recent years. Washington has sought to curb exports of state-of-the-art chips to China, concerned that they could be used to advance Beijing's military systems and otherwise undermine American dominance in AI. In May, Trump's administration rescinded some export controls on semiconductors. But Washington also unveiled fresh guidelines warning firms that using Chinese-made high-tech AI semiconductors, specifically tech giant Huawei's Ascend chips, would put them at risk of violating US export controls. Beijing described the warnings as "typical unilateral bullying and protectionism." On Tuesday, U.S. tech giant Nvidia announced it would resume sales of its H20 artificial intelligence chips to China, after Washington pledged to remove licensing curbs that had halted exports. © 2025 AFP
Yahoo
7 days ago
- Business
- Yahoo
Popular AI stock tanks after surprise tariff hit
Popular AI stock tanks after surprise tariff hit originally appeared on TheStreet. AI's future continues to impress, but its supply chain has hit a wall. Tariffs, trade probes, and export bans have been racking up quickly, hitting chipmakers hard. With levies on semiconductors and the potential for even more regulatory shocks, the cost of competing in AI has gone up immensely. 💵💰💰💵 Suddenly, what looked like a straight line to growth now feels more like a minefield. One high-flying AI stock in particular just took a monumental hit, and it never saw it coming. Tariffs are turning up the heat on AI chipmakers The U.S.-China tariff battle has evolved from being purely a political chess match. Recent months have shown that it has become a critical supply chain migraine for the world's largest AI players. Under Section 232 and 301 trade rules, Washington slapped 25% tariffs on chips and semiconductor tools. Beijing responded with 34% duties on U.S. chip exports, resulting rising costs, splintered supply chains, and growing anxiety across the AI ripple effects are already painful. Nvidia had to gulp down a $4.5 billion writedown on its China-bound H20 chips following an April export ban (the situation's flipped on its head now). That's far from being chump change, even for the hottest AI plays on the planet. AMD is in a similar boat, filing for export licenses just to get its MI308 processors back into Chinese data centers. Then there's the equipment side for investors to deal with. U.S. giants like Applied Materials and Lam Research are looking at north of $1 billion in annual hits from 25% tariffs on their chipmaking tools. More AI Stock News: Elon Musk's xAI is already shockingly massive Bank of America drops shocking call on Super Micro stock Cathie Wood drops bold message on Apple, Tesla stock That pressure doesn't just eat into profits; it threatens to effectively slow R&D at a time when next-gen AI hardware is highly in demand. Tariff jitters tank AI stock, despite solid Q2 ASML ( () ) may have delivered a solid quarter, but it fell short of stopping the bleeding after CEO Christophe Fouquet threw cold water on 2026 expectations. ASML quietly became one of the go‑to names for investors looking for pure‑play AI exposure. Its powerful ultraviolet (EUV) lithography machines power the entire semiconductor value chain, etching complex patterns needed in developing advanced AI chips. That said, shares in the Dutch semiconductor giant dropped nearly 9% after management pulled back on its growth forecast. They cited 'increasing uncertainty driven by macro-economic and geopolitical developments.' Fouquet didn't name-drop, but all signs point to President Donald Trump's threatened 30% tariffs on EU imports, and the tension among Washington, Brussels, and a major shift in tone from last November, when ASML called 2026 a massive growth year. Now? 'We cannot confirm it at this stage,' Fouquet said. Q2 results, though, were mostly strong, with ASML posting €7.7 billion in net sales vs. €7.52 billion expected. More impressively, it delivered €2.29 billion in profit vs. €2.04 billion guidance. Nevertheless, the outlook for Q3 fell behind expectations, with a sales forecast between €7.4 billion and €7.9 billion, short of the €8.3 billion Street consensus. To make things even worse, the company reduced its 2025 full-year net sales outlook, targeting 15% growth instead of an earlier €30 billion to €35 billion range. So the broader concern now is tariffs. ASML's U.S. customers, including Intel and TSMC, are exposed to policy shifts, and any move from the White House could throw another wrench into the AI supply chain. With trade talks ongoing, investors will be watching every headline. But for now, ASML's guidance retreat has rattled even the AI stock tanks after surprise tariff hit first appeared on TheStreet on Jul 16, 2025 This story was originally reported by TheStreet on Jul 16, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Business
- Yahoo
ASML: Strong Quarter, Uncertain Guidance
Key Points ASML beat top- and bottom-line expectations, growing sales by 24% and earnings per share by 47% in the quarter. The company continues to see solid demand for its high-end lithography equipment used to make the powerful chips needed for AI data centers. Tariffs and trade policy are clouding ASML's near-term outlook, leaving the company unable to say whether it will grow in 2026. 10 stocks we like better than ASML › Here's our initial take on ASML's (NASDAQ: ASML) fiscal 2025 second-quarter financial report. Key Metrics Metric Q2 2024 Q2 2025 Change vs. Expectations Net sales 6.2 billion euros 7.7 billion euros 24% Beat EPS 4.01 euros 5.90 euros 47% Beat New units sold 89 67 -25% n/a Net bookings 5.6 billion euros 5.5 billion euros -2% n/a ASML Management Is Unsure About 2026 Growth ASML is the world's go-to supply of high-end lithography equipment used to manufacture microchips, with its most expensive systems selling for nearly $400 million each. The company stands to be a major beneficiary of the AI boom, which is fueling demand for more chips and the machines that produce them, but the high price of its systems tends to result in quarter-to-quarter choppiness. ASML posted revenue and earnings up 24% and 47% year over year despite selling fewer systems this quarter. Lithography equipment varies in price based on the sophistication of the device, implying that the company is seeing strong demand for its newer, cutting-edge technology. Net bookings in the quarter came in flat at 5.5 billion euros, of which 2.3 billion euros was for higher-end systems. The company generated a gross margin of 53.7% in the quarter. But the company is worried about storm clouds on the horizon. ASML's semiconductor customers have been dealing with heightened uncertainty due to trade restrictions and tariff policies, creating questions about orders heading into 2026. CEO Christophe Fouquet said, "AI customers' fundamentals remain strong," but ASML is seeing "increasing uncertainty driven by macro-economic and geopolitical developments." Fouquet said that while ASML is still preparing for growth in 2026, "we cannot confirm it at this stage." Immediate Market Reaction Investors were focused on the commentary about 2026, and not the second-quarter results. ASML shares were down 8% in premarket trading ahead of the New York Stock Exchange open. What to Watch Although ASML's cautious guidance about 2026 is weighing on investors post-earnings, the long-term growth story is still intact. The company is a vital piece in the supply of arguably one of the most important components of the global economy, and with AI spending and other digital efforts likely to continue to build for years to come, there should be solid demand for semiconductors and the machines needed to make them. The geopolitical situation is rapidly changing. Just this week, the U.S. reversed a ban on Nvidia (NASDAQ: NVDA) selling its H20 chips in China. In a recorded interview posted on ASML's website accompanying earnings, the company's chief financial officer, Roger Dassen, attributed the second-quarter beat in part to tariffs having a "less negative" impact than anticipated. If that trend continues, ASML's caution about 2026 could prove to be overly conservative. Helpful Resources Full earnings report Investor relations page Should you buy stock in ASML right now? Before you buy stock in ASML, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and ASML wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $679,653!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,308!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Lou Whiteman has positions in ASML. The Motley Fool has positions in and recommends ASML and Nvidia. The Motley Fool has a disclosure policy. ASML: Strong Quarter, Uncertain Guidance was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
