Dutch semiconductor machinery titan ASML Holding NV (NASDAQ:ASML) has lost its crown as Europe's most valuable technology company after shedding up to $50 billion from its share price in just two days.
Now at a market capitalisation of €258 billion, ASML is slightly below German software multinational SAP, which is valued closer to €260 billion.
ASML’s sharp downturn follows a warning that it expects a slower cyclical recovery in the semiconductor market.
ASML is the only company in the world supplying extreme ultraviolet (EUV) lithography machines, which are used to manufacture cutting-edge AI chips at TSMC’s and Samsung’s chip foundries.
In a third-quarter trading update, chief executive Christophe Fouquet said artificial intelligence-focused microchip demand remains strong but “other market segments are taking longer to recover”.
“This is expected to continue in 2025, which is leading to customer cautiousness,” he added.
ASML’s disappointing third quarter spooked the wider chipmaking market, with Nvidia Corp, Arm Holdings PLC (NASDAQ:ARM) and Advanced Micro Devices plc dipping on Tuesday, though pre-market trades are pointing to a recovery across the sector.
“ASML’s warning has spooked investors holding anything linked to the semiconductor space,” suggested AJ Bell’s investment director Russ Mould.
“It was a blanket sell-off despite ASML saying AI-related demand remains strong, which suggests investors are worried that this warning is the sign of things to come on a broader basis.”