ASML Shares Take a Massive Hit Following Disappointing Orders

ASML Holding experienced its largest share price drop in 26 years after reporting a significant slowdown in order bookings. The company, known for producing some of the most advanced machines used in chipmaking, announced that its bookings for the third quarter totaled €2.6 billion (approximately $2.8 billion). This figure fell dramatically short of the average estimate of €5.39 billion by analysts who had anticipated a much stronger performance.

Impact on Company Outlook

Due to this disappointing performance, ASML has also reduced its guidance for the year 2025, indicating that it does not expect the recovery in demand to materialize as previously thought. The abrupt dip in orders raises concerns not just for ASML, but for the broader semiconductor market, which relies heavily on the company's technology.

Market Reactions

The immediate market reaction was severe, with ASML's shares plummeting 16% in Amsterdam, marking the largest decline since June 12, 1998. This downturn had a cascading effect on the entire chip sector, leading to a plunge in related stocks. Notably, Nvidia saw a decline of 4.5%, while the Philadelphia Semiconductor Index, a key benchmark for the industry, dropped by 5.3%. The manufacturers of chip-making equipment were particularly affected; companies like Applied Materials and Lam Research experienced their biggest drops since 2020, and KLA Corp. had its largest one-day fall in nearly a decade.

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