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Global chip stock market value evaporates $420 billion in a single day!

ASML's disappointing performance yesterday came as a major surprise to the market, with orders being just half of market expectations, while also lowering sales targets and gross margin guidance for next year.

Today, the combined market value loss of U.S.-listed chip manufacturers and large-cap chip stocks in Asia exceeded $420 billion. ASML's stock price continued to decline, falling by 5.0%.

Yesterday's financial report showed that the company lowered its expected upper limit for net sales in 2025 from €40 billion to €35 billion (approximately $38 billion). The company also downgraded its outlook due to weak demand in areas other than AI, leading to its stock experiencing the largest drop in the European market since 1998.

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"The magnitude of this adjustment is surprising," said Citigroup analyst Atif Malik in a report. Although ASML expects weaker performance forecasts for 2025 due to factors such as the slowdown in non-AI applications and reduced spending by Intel, the "magnitude of this adjustment is surprising."

Jung In Yun, CEO of Fibonacci Asset Management Global Pte, said:

"We believe that chip manufacturers are strategically reducing orders for ASML, which has had a negative impact on ASML's earnings."

He stated that it is currently unclear whether the driving factor is cost-cutting or other strategic reasons.Due to a technical glitch, the financial report was disclosed a day earlier than planned, and the lack of illustrations has further exacerbated the company's situation. Investors will be paying attention to the earnings call scheduled for 15:00 Central European Time (21:00 Beijing Time) following the release of the financial report, hoping that the company can provide more detailed explanations regarding business operations as well as the timing of orders, bookings, revenue, and shipments.

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