ASML Faces Critical Test as Quarterly Results Approach

Dutch semiconductor equipment manufacturer ASML finds itself at a pivotal juncture as its third-quarter financial report approaches. The company’s shares have experienced significant pressure following a sobering analyst downgrade, setting the stage for a crucial earnings announcement on October 15th.

Market sentiment turned decidedly negative after New Street Research adjusted its rating on ASML from “Buy” to “Neutral,” establishing a price target of 790 euros. The research firm expressed particular concern about what it characterized as “weak” growth prospects beyond 2026. Despite acknowledging robust current demand driven by artificial intelligence applications, New Street analysts anticipate reaching “maximum acceleration” this year with spending peaks occurring in the following year.

The assessment presented a troubling outlook, citing a “risky constellation” of near-term... Read more...