ASML Reports 18% Order Miss Amid Trade War Concerns

ASML, a leading semiconductor equipment maker, reported first-quarter results that missed analysts’ expectations for new orders, with bookings falling about 18% short of estimates amid growing uncertainty from US-China trade tensions and new US export restrictions. CEO Christophe Fouquet maintained a cautiously optimistic outlook, reiterating growth expectations for 2025 and 2026 but warning that recently announced tariffs and trade war escalation could negatively impact demand and the company's revenue guidance. While ASML's net sales and profit slightly exceeded forecasts, the disappointing order intake has raised concerns about future demand, especially as AI-driven growth faces potential headwinds from capital spending constraints among major customers. China remains a significant but declining share of ASML's revenue, and the worsening geopolitical climate is expected to further reduce its contribution. The company highlighted that ongoing tariff negotiations and retaliatory measures could increase costs and add volatility to the semiconductor supply chain. Overall, ASML's results and outlook are seen as a bellwether for the broader semiconductor industry, signaling both resilience and substantial risk from mounting trade and economic uncertainties.