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ASML reported that orders for its chipmaking machines were nearly €1 billion below market expectations. Christophe Fouquet, the company’s Chief Executive, cautioned that recent tariff announcements by Donald Trump had heightened uncertainty. ASML’s shares, which have been affected by concerns over tariffs and a potential slowdown in artificial intelligence spending, fell 6.2% during early trading on Wednesday, marking a 16% decline since January.
Fouquet noted that artificial intelligence continues to drive market demand, asserting that the demand remains strong while the company closely monitors the effects of tariffs. For the quarter ending in March, ASML’s net bookings, an important measure including orders for chipmaking equipment not yet delivered, totaled €3.9 billion, compared to analysts’ expectations of €4.8 billion.
This represented a shift from the previous quarter, when booking figures significantly exceeded expectations as customers sought to preempt anticipated US restrictions on ASML’s equipment. The Netherlands-based company faces challenges in forecasting short-term orders due to the high costs of its proprietary lithography machines; 73 units were sold in the quarter. Manufacturers such as Taiwan Semiconductor Manufacturing Company, Intel, and Samsung depend exclusively on ASML’s equipment to produce cutting-edge chips for clients like Apple and Nvidia.
The overall sales for the first quarter were roughly in line with expectations at €7.7 billion, reflecting a 46% increase compared to the same period last year. ASML projected second-quarter revenues between €7.2 billion and €7.7 billion, slightly below the analysts’ forecast of €7.8 billion according to Visible Alpha.
ASML maintained its annual revenue projection of €30 billion to €35 billion. Fouquet stated that discussions with customers so far support the company’s expectation of growth in 2025 and 2026. Nevertheless, he acknowledged that the recent tariff announcements have increased uncertainty in the broader economic environment, suggesting that the situation will remain dynamic for some time.
