ASML stock falls 6.5% after computer chip maker warns no growth promised for 2026

ASML shares fell 6.5% after the Dutch chip equipment maker warned it cannot promise growth in 2026, according to CNBC reporting on the company's latest earnings announcement. The company makes crucial machines needed to produce the world's most advanced computer chips, serving major clients like Intel and Taiwan Semiconductor Manufacturing Company.

Even though ASML beat expectations for the second quarter with strong sales and profits, investors were disappointed by the uncertain outlook for next year. The company's CEO Christophe Fouquet explained that while their artificial intelligence customers remain strong, growing uncertainty from economic and political issues makes it impossible to confirm growth plans for 2026. CNBC noted that ASML narrowed its forecast for this year, now expecting sales to grow around 15% instead of the previously wider range of 30 billion to 35 billion euros in total revenue.

The Wall Street Journal highlighted how President Trump's recent tariff threats are creating major problems for ASML's business planning. Trump sent a letter to the European Union warning of 30% tariffs on imports starting Friday, August 1, which directly affects companies like ASML that sell expensive chip-making equipment to American customers. The company's finance chief Roger Dassen explained they are working with suppliers to reduce the impact of these potential tariffs as much as possible.

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ASML faces both direct costs from tariffs on equipment sold to US clients and indirect costs if other countries respond with their own tariffs on ASML's American-made parts. The Wall Street Journal reported that ASML's stock dropped more than 7% in Amsterdam trading as investors worried about how trade disputes might hurt the company's ability to serve its global customer base, which includes major chip makers in Asia and America.

Bloomberg emphasized how CEO Christophe Fouquet completely changed his previous optimistic predictions about 2026 growth prospects. Just three months ago, Fouquet had confidently told investors that both 2025 and 2026 would be growth years based on conversations with customers, but now he admits the situation has become too uncertain to make such promises.

The semiconductor industry has been dealing with mixed demand, with strong interest in chips for artificial intelligence applications but weaker demand for simpler chips used in cars and smartphones. Bloomberg noted that ASML's quarterly orders can vary significantly because they depend heavily on how much chip makers are willing to spend on new production equipment. Despite these challenges, ASML reported solid second-quarter results with sales of 7.69 billion euros and net profit of 2.29 billion euros, both beating analyst expectations. The company received 5.54 billion euros in new orders, including 2.3 billion euros for their most advanced extreme ultraviolet lithography machines that are essential for making cutting-edge processors used in smartphones and computers.