Shares of ASML (ASML.AS) experienced a significant decline of over 7% on Wednesday morning following a cautious update regarding its future sales forecasts for 2026. The Dutch chipmaking equipment supplier revealed its earnings for the second quarter, reporting net sales of €7.7 billion, which aligns with the upper limit of the company’s prior guidance. Net income for the quarter stood at €2.3 billion.
Looking ahead, ASML projected third-quarter sales to be between €7.4 billion and €7.9 billion. The company anticipates a year-on-year sales growth of 15%, estimating total revenue for the year to be approximately €32.5 billion. This figure marks a downward adjustment from the earlier guidance of between €30 billion and €35 billion made in the first quarter.
CEO Christophe Fouquet expressed cautious optimism, indicating that while demand from artificial intelligence (AI) customers remains robust, there is growing uncertainty driven by global economic and geopolitical factors. He noted the company’s preparation for growth in 2026 but refrained from confirming it at this time.
Analysts, such as Derren Nathan from Hargreaves Lansdown, recognize AI as a crucial growth driver, particularly for ASML’s advanced Extreme Ultraviolet (EUV) lithography machines. However, Nathan warned that potential tariff and export control uncertainties might hinder the expected growth, emphasizing that a significant increase in order intake is necessary to meet market expectations for 2026.
In a related note, shares of MP Materials surged dramatically by 20% on Tuesday after Apple announced a $500 million agreement to purchase rare earth magnets from the company. This partnership is expected to expand Apple’s supply chain in the U.S. as part of its commitment to invest over $500 billion domestically in the coming four years. The deal also involves the establishment of a recycling facility in California, where MP Materials will process recycled rare earth elements, furthering sustainability efforts in the tech sector.
Overall, while ASML faces some short-term challenges and uncertainty, the growing demand for AI technologies and partnerships like that of Apple and MP Materials offer a glimpse of optimism in tech supply chains.