ASML Holding NV, the world's largest supplier of chip-making equipment, saw its stock price plummet 5.44% in a 24-hour period, as the semiconductor industry faces multiple challenges. The sharp decline comes as the company grapples with uncertain outlook and broader industry headwinds.

ASML's CEO, Christophe Fouquet, highlighted increasing uncertainty for the company's outlook in 2025 and 2026 due to tariffs. This revelation, coupled with disappointing first-quarter net bookings of 3.9 billion euros ($4.4 billion) - below analysts' expectations of 4.89 billion euros - has rattled investor confidence. The lower-than-expected bookings suggest potential softening demand in the chip equipment sector.

The semiconductor industry as a whole is facing pressure from geopolitical tensions. Recent news of the U.S. government imposing new export limits on Nvidia's chips to China has sent shockwaves through the sector. Additionally, President Donald Trump's order for a probe into potential tariffs on critical minerals has further exacerbated concerns. These developments have triggered a broader selloff in tech and chip stocks, with industry peers such as AMD, Nvidia, and Intel also experiencing significant declines. As a key player in the semiconductor supply chain, ASML's stock has been caught in this industry-wide downturn, reflecting growing investor anxiety about the future of chip manufacturing and international trade relations.