By Toby Sterling and Nathan Vifflin

AMSTERDAM (Reuters) – Dutch semiconductor hardware producer ASML said on Tuesday that it will see its new 2025 focus for deals and orders beneath recently conveyed numbers. This news prompted the eradication of 33% of ASML’s worth in a solitary day, the greatest one-day decline since the organisation opened up to the world in 1998.

Despite strong demand for AI-related chips, the company said other areas of the chip market remain weak, leading customers to delay purchases. Those who make memory chips are planning only limited expansions. As a result, companies that make chips, like Intel and Samsung, are placing fewer orders.

ASML is Europe’s largest-tech company that produces materials used by market leaders like Taiwan Semiconductor Manufacturing Company (TSMC), Intel, and Micron.

The company put out its quarterly early by a day, which a spokesman described as a ‘technical glitch’.

From the information ASML’s CEO Christophe Fouquet provided, the company anticipates that in 2025, sales will reach between €30 to €35 billion that is below earlier projections. He also pointed out the fact that, due to the continued slump in the chip market, the customers are now ordering wisely.

In Amsterdam, ASML’s shares have been suspended many times due to the fall. By the end of the day their shares were 16% down and closed at 668.10 euros.

On a yearly basis, for the third quarter ASML earned a net profit of 2,1 billion euros on sales of 7,5 billion euros which was slightly above most analysts’ expectations. Comparable revenues could only be seen in the bookings which stood at 2.6 billion euros, quite far from the estimates of between 4-6 billion euros.

For the second from last quarter, ASML detailed a net benefit of 2.1 billion euros on deals of 7.5 billion euros, somewhat better than investigators had anticipated. Notwithstanding, the organisation’s appointments just arrived at 2.6 billion euros, much lower than assumptions, which went somewhere in the range of 4 and 6 billion euros.

Lowered Expectations

ASML’s stock had already been under pressure during the summer after Intel announced it would cut spending and as memory chip prices weakened.

Analysts were surprised by the change in ASML’s outlook. Citi noted that just last month, the company had said their earlier forecast for 2025 was “conservative.”

Analysts, like Michael Roeg from Degroof Petercam, expect that this warning from ASML could negatively affect the entire sector. However, Roeg also pointed out that ASML’s sales are still expected to grow in 2025 compared to 2024.