ASML Faces Mounting Headwinds as Analyst Sentiment Sours

The investment case for Dutch semiconductor equipment manufacturer ASML is growing increasingly complex, prompting several major investment banks to revise their outlooks downward. A confluence of challenging factors—geopolitical friction, softening demand, and hesitant key customers—is creating significant uncertainty for the chip giant.

A primary concern highlighted by analysts is ASML’s substantial exposure to the Chinese market. Nearly half of the company’s most recent quarterly revenue originated from China, despite being restricted to selling only its older deep ultraviolet (DUV) lithography systems there. New warnings suggest this crucial revenue stream may be at risk. Analysts at Deutsche Bank point to emerging overcapacity within China’s domestic semiconductor sector and a noticeable pullback in spending. An even more... Read more...