ASML Reports Quarterly Results Amid Geopolitical Uncertainty
ASML (NASDAQ: ASML) reported a strong second quarter on July 16, but its stock fell by over 11% during trading, ultimately closing down 8.3%. The company reaffirmed its guidance for 15% revenue growth for the full year, with expectations of 55% to 112% revenue increase by 2030, but cited geopolitical headwinds affecting customer spending.
ASML’s systems are critical in the semiconductor industry, with EUV machines expected to drive revenue growth as they replace older technology. However, the company is grappling with tariffs impacting its supply chain and cannot sell advanced systems to China, limiting its market reach despite significant demand.
In the latest quarter, ASML sold 76 new lithography units, predominantly to Taiwan (35%) and China (27%). The macroeconomic environment poses risks for the semiconductor sector, with potential ramifications for other companies like Nvidia (NASDAQ: NVDA) and Broadcom (NASDAQ: AVGO) that rely on ASML’s equipment.
