The Dow Jones Industrial Average, S&P 500, and Nasdaq all saw losses on Tuesday. ASML Holding’s stock plummeted after a revised 2025 sales forecast, while Walgreens Boots Alliance surged due to strong fourth-quarter sales. Trump Media & Technology Group and United Airlines Holdings also saw notable movements. Tesla’s stock saw a slight rise but made headlines due to a significant Bitcoin transfer.
Applied Materials (AMAT) shares plummeted over 10% on Tuesday, mirroring the broader semiconductor industry’s decline following ASML’s disappointing guidance and concerns over potential U.S. chip export restrictions. ASML’s revised sales outlook, indicating a slower-than-expected recovery in key markets, triggered fears of a broader industry pullback, impacting Applied Materials’ future revenue prospects.
A wave of market-moving news swept across Wall Street on Tuesday, leaving major indices in a mixed bag. Tech and energy stocks took a nosedive, dragging down the Dow Jones and S&P 500, while small-cap stocks outperformed, buoyed by regional bank gains. The day’s biggest story was the dramatic plunge in ASML Holding NV (ASML) shares, which plummeted over 16% after a technical error prematurely revealed its third-quarter earnings. The leak revealed weaker-than-expected guidance for 2025, sending shockwaves through the semiconductor sector.
AMD stock, along with other chip companies, is experiencing a decline in trading, mirroring the drop in ASML’s share price following the release of its soft guidance. ASML, a key supplier of chip manufacturing equipment, predicts lower-than-expected sales and expenses in the upcoming quarters, raising concerns about the broader chip industry’s performance. This news comes amidst reports of potential U.S. restrictions on chip exports, adding to the uncertainty in the sector.
Shares of ASML Holding, a leading semiconductor equipment manufacturer, plummeted by over 16% after the company unexpectedly lowered its 2025 sales forecast. This unexpected move, driven by slower-than-expected recovery in key market segments, sent shockwaves through the semiconductor sector. The news also impacted other chip-related stocks, highlighting the vulnerability of the industry to shifts in market sentiment and growth projections.
TSMC, the world’s leading semiconductor manufacturer, will receive its first High-NA EUV lithography machine from ASML later this month, marking a significant advancement in its manufacturing capabilities and fueling the ongoing race for chip dominance with rivals like Samsung and Intel.
This article explores the value of Wall Street analyst ratings, using ASML as an example. It highlights the potential bias in these ratings and recommends using a more reliable tool like the Zacks Rank to guide investment decisions.
Swiss investment bank UBS downgraded ASML Holding NV, a leading Dutch chipmaker, from Buy to Neutral, citing slower earnings growth expectations in the coming years. This move follows a bloodbath in the US semiconductor sector on Tuesday and reflects concerns about declining demand for advanced chips. The downgrade sent ripples through US semiconductor stocks, with Nvidia, Intel, and AMD all experiencing significant losses.
The Netherlands’ newly elected prime minister is set to restrict ASML Holding NV, the world’s leading supplier of semiconductor equipment, from providing repair and maintenance services to Chinese companies. This move, prompted by US pressure, will significantly impact China’s ability to produce advanced semiconductors and potentially hurt ASML’s business.
Samsung Electronics is set to receive a state-of-the-art High-NA EUV lithography machine from ASML, marking a significant step in its pursuit of semiconductor leadership. The machine will be operational in the first half of 2025, enabling Samsung to compete with industry giants like TSMC and Intel in advanced chip manufacturing.
