Suppliers to chip manufacturers anticipate a gradual improvement in the sector's growth trajectory.
Chipmakers are currently focusing more on AI, but they're being cautious in other sectors. ASML Holding, a key player in semiconductor equipment, noticed a decrease in orders during the summer, leading to the adjustment of their 2025 goals. The reduced spending on critical production equipment by chipmakers suggests a gradual recovery in semiconductor demand may be occurring. As a result, ASML's shares took a significant hit, plummeting by up to 15%. The decline affected the global semiconductor industry, including industry leader Nvidia's stock.
"Although AI continues to display promising advancements and growth opportunities, other markets require additional time to rebound," CEO Christophe Fouquet stated. "The recovery appears to be progressing at a slower pace than initially anticipated."
ASML recorded orders worth approximately 2.6 billion euros in the third quarter, which is slightly more than the previous year but less than the anticipated 5.6 billion euros saluted by analysts. The company's revenue between July and the end of September amounted to 7.5 billion euros, reporting earnings of 2.1 billion euros.
For the next year, ASML forecasts revenues between 30-35 billion euros, a reduction from the 40 billion euros mentioned during their 2022 investor day. The gross margin is expected to fall within a 51-53% range, lower than the previous target.
The disclosure of financial results was made early due to a suspected data leak, two days ahead of the planned announcement, according to an ASML spokesperson. They are currently investigating the situation and preparing a full explanation of the results and their early publication.
The economic slowdown in other sectors has caused chipmakers to reconsider their investment plans, with ASML adjusting its 2025 goals due to reduced spending on critical production equipment. Furthermore, the economy's gradual recovery may impact ASML's future revenue projections, as the company has reduced its forecast for the next year to a range between 30-35 billion euros.
