Rahul Somvanshi
Shares of ASML fell to 16%, followed by a premature release of the company's disappointing sales data.
Photo Source: Google
The company's sales couldn’t reach the expected range of 30-35 billion dollars.
Quarter 3 booking for ASML remained at 2.6 billion euros, which is much lower than the forecasted 4-6 billion euros.
Despite having negative trends, the company managed to reach a net sales of 7.5 billion euros.
ASML’s operation in China, which accounted for 20% of its production, got a severe hit because of US and Dutch restrictions on the transfer of critical technologies.
This quarter's results can overshadow the positive trend set by ASML in quarter 3.
Analysts suggest underusage of high technology can be a major cause of underperformance.
ASML’s lithography machines remain a key component for many chipmakers, including Nvidia.
Company is expected to recover at a slower pace as ongoing export restrictions to China remain a bigger challenge.
Proof News Report: 173,536 YouTube Videos Feed Data Hungry AI at Major Tech Firms—Find Out the Impact