MW ASML, a key microchip bellwether, disappoints on orders

By Barbara Kollmeyer

Dutch semiconductor equipment group ASML Holding reported disappointing orders for the first quarter and flagged growing uncertainty surrounding U.S. tariffs on Wednesday.

ASML $(ASML)$ (NL:ASML) said net bookings in the first quarter totaled EUR3.94 billion ($4.48 billion), versus fourth-quarter 2024 bookings of EUR7.09 billion.

Analysts surveyed by Visible Alpha expected bookings of EUR4.84 billion.

In premarket trade, ASML shares slumped 6%.

Shares of ASML have dropped over 30% in the past year, as a weaker macroeconomic environment and uncertainty over the supply chain for AI weighs on the industry.

ASML reported net income for the quarter of EUR2.36 billion, from EUR1.22 billion a year ago, and net sales of EUR7.74 billion from EUR5.29 billion a year ago. That was actually close to expectations - analysts had forecast a EUR2.28 billion profit on sales of EUR7.77 billion.

However, ASML said it expects second-quarter total net sales between EUR7.2 billion and EUR7.7 billion, with a gross margin between 50% and 53%.

Analysts had expected second-quarter sales of EUR7.77 billion and a gross margin of 52.4%.

The Dutch company left its annual net sales forecast unchanged - between EUR30 billion and EUR35 billion - with a gross margin between 51% and 53%.

ASML's president and chief executive officer, Christophe Fouquet, said "recent tariff announcements have increased uncertainty in the macro environment and the situation will remain dynamic for a while.

"As previously shared, artificial intelligence continues to be the primary growth driver in our industry. It has created a shift in the market dynamics that benefits some customers more than others, contributing to both upside potential and downside risks as reflected in our 2025 revenue range," said Fouquet in a statement.

ASML makes cutting edge lithography machines, vital for making advanced semiconductors and its customers include Intel $(INTC)$ and Taiwan Semiconductor Manufacturing $(TSM)$.

ASML's weak bookings come as Nvidia warned that U.S. restrictions on selling its H20 chips to the Chinese market will result in a write-down of $5.5 billion in the fiscal first quarter. Nvidia shares $(NVDA)$ tumbled over 6% in late trading on Tuesday in the U.S., and stock futures (ES00) (NQ00) (YM00) are pointing to a weaker start for Wall Street, led by technology.

-Barbara Kollmeyer

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April 16, 2025 02:54 ET (06:54 GMT)

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