ASML Shares Face Mounting Pressure as Correction Deepens

The stock of Dutch semiconductor equipment giant ASML is experiencing a pronounced downturn. The recent trading sessions have seen a clear shift in momentum, with sellers taking control and pushing the share price lower.

From a technical perspective, the situation has deteriorated. The equity closed at €951.60 on the Euronext Amsterdam exchange this Friday, marking a decline of 0.60%. This followed a 0.63% drop on Thursday, resulting in two consecutive losing sessions. The breach of the psychologically significant €960 level, which the price failed to defend, is viewed as a bearish signal. Trading activity remained substantial with a volume of approximately 359,000 shares, but the data pointed to a distinct lack of buying interest. The quarterly dividend payment of $1.857 per share proved insufficient to counteract the prevailing downward pressure.

Friday’s trading pattern underscored the negative sentiment. After opening at €960.60, the shares steadily declined throughout the day, with the closing price matching the session's low point of exactly €951.60.

Should investors sell immediately? Or is it worth buying Asml?

Diverging Views: Analyst Confidence vs. Institutional Selling

Beneath the surface price action, a contradictory narrative is emerging. While the share price falls, fundamental optimism from some research firms persists. Analysts at Bank of America recently upgraded their assessment, issuing a price target of $1,331 for ASML's US-listed shares.

This outlook, however, contrasts with actions taken by major institutional investors. Asset manager Invesco, for instance, reduced its stake by selling off roughly 4.2% of its ASML holdings. Furthermore, market discussions are being weighed down by news of potential long-term competition. The emergence of "xLight," a prospective US rival in the lithography sector, is fostering uncertainty about the distant future, even though ASML's monopoly in extreme ultraviolet (EUV) technology remains unchallenged for now.

The €950 Support Level in the Spotlight

The immediate focus for traders is now squarely on the €950 support mark. The critical question for the coming days is whether this level will hold or if the current corrective phase will extend further. The market is currently characterized by a tension between the company's underlying strength—driven by robust AI-related demand—and the significant selling pressure impacting its shares in the short term.