ASML Stock Falls on Weak Orders. Should Investors Buy the Dip?
Shares of ASML Holding (NASDAQ: ASML) slipped after the company's net bookings, or orders, came in below expectations, and it warned that tariffs were creating uncertainty. The stock has fallen about 30% over the past year, as of this writing, largely due to concerns related to Chinese trade restrictions and, more recently, the impact of tariffs.ASML makes equipment that semiconductor foundries use to manufacture chips. The Dutch company has a virtual monopoly on extreme ultraviolet (EUV) lithography, which is a manufacturing process for creating advanced chips. Chipmakers such as Taiwan Semiconductor Manufacturing rely on ASML's EUV lithography machines to produce advanced chips, such as Nvidia's graphic processing units (GPUs).The company has also introduced a new technology called a high numerical aperture extreme ultraviolet lithography system, or High NA EUV, which will be critical in helping shrink chip sizes further. While some customers have balked at the machine's high price, ASML shipped its fifth High NA EUV system in the first quarter, and it now has machines at the three largest semiconductor contract manufacturers. Continue reading
Shares of ASML Holding (NASDAQ: ASML) slipped after the company's net bookings, or orders, came in below expectations, and it warned that tariffs were creating uncertainty. The stock has fallen about 30% over the past year, as of this writing, largely due to concerns related to Chinese trade restrictions and, more recently, the impact of tariffs.
ASML makes equipment that semiconductor foundries use to manufacture chips. The Dutch company has a virtual monopoly on extreme ultraviolet (EUV) lithography, which is a manufacturing process for creating advanced chips. Chipmakers such as Taiwan Semiconductor Manufacturing rely on ASML's EUV lithography machines to produce advanced chips, such as Nvidia's graphic processing units (GPUs).
The company has also introduced a new technology called a high numerical aperture extreme ultraviolet lithography system, or High NA EUV, which will be critical in helping shrink chip sizes further. While some customers have balked at the machine's high price, ASML shipped its fifth High NA EUV system in the first quarter, and it now has machines at the three largest semiconductor contract manufacturers.
