ASML's third-quarter performance declined, and its stock price plunged!
Recently, ASML, the world's leading supplier of semiconductor manufacturing equipment, announced its third-quarter financial report. The results showed that although net sales and net profit increased, the order volume fell sharply, far below market expectations. This news caused ASML's stock price to plummet by more than 20% in two days, hitting the lowest point in nearly a year.
ASML's net sales in the third quarter reached 7.467 billion euros, a month-on-month increase of 19.6%; net profit reached 2.077 billion euros, a month-on-month increase of 31.6%. However, in sharp contrast, the total amount of new orders was only 2.6 billion euros, a sharp drop from 5.6 billion euros in the previous quarter, a drop of 53%. This data is far below market expectations and has also caused investors to worry about ASML's future growth prospects.
ASML CEO Christophe Fouquet said at the earnings conference that the slow recovery of chip industry demand is one of the main reasons for the decline in orders. He pointed out that while ASML continues to see AI as a key driver of industry recovery, demand recovery in markets such as automobiles, mobile devices and personal computers has been particularly slow, and some investment plans have been postponed.
What is more worrying for investors is that ASML's growth prospects in the Chinese market have also been limited. Due to relevant export restrictions in the United States and the Netherlands, ASML cannot sell advanced lithography machines to Chinese manufacturers. ASML's financial report data for the previous quarter showed that the Chinese market accounted for 49% of its sales and was a key supplier to advanced process chip manufacturers in mainland China and Taiwan. Therefore, the restrictions on the Chinese market have had a significant impact on ASML's performance.
Affected by poor performance and market concerns, ASML's stock price plunged sharply after the release of the financial report. In the U.S. stock market, ASML's stock price fell by more than 6%, hitting its lowest point in nearly a year. In the European market, ASML's stock price has also suffered a heavy blow.
Despite many challenges, ASML still expressed confidence in the future. Christophe Fouquet said that ASML will continue to focus on technological innovation and market expansion to cope with the current market environment. He also emphasized that ASML will pay close attention to market dynamics and customer needs, and flexibly adjust its business strategy to ensure the company's long-term stable development.
However, for ASML, how to overcome the current market difficulties and resume growth is still a huge challenge. Investors and the industry are also paying close attention to ASML's subsequent dynamics and performance.
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