Amsterdam-listed shares in ASML (ASML.AS, ASML) slid more than 7% on Wednesday morning, after the chipmaking equipment supplier narrowed its guidance and offered a cautious outlook for 2026.
In results released on Wednesday morning, ASML reported total net sales of €7.7bn (£6.7bn) for the second quarter, which was at the top end of guidance. The Dutch company, which supplies lithography machines are used to make semiconductors, posted net income of €2.3bn for the second quarter.
ASML said it expected total net sales of between €7.4bn and €7.9bn for the third quarter. For the year, ASML said it expected total net sales sales to grow by 15% year-on-year, which compared to €28.3bn in 2024, would work out to €32.5bn, according Yahoo Finance UK calculations. That compares to the range of €30bn and €35bn ASML provided in the first quarter.
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In addition, ASML CEO Christophe Fouquet said that while “AI customers' fundamentals remain strong”, the company continued to “see increasing uncertainty driven by macro-economic and geopolitical developments”.
“Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage,” he said.
Derren Nathan, head of equity research at Hargreaves Lansdown, said: “AI remains the key growth driver particularly for its advanced EUV lithography machines. Within that revenue stream there are also signs that orders for the next generation High NA machines are starting to pick up albeit at a lower margin than older models.
“But uncertainty on tariffs and export controls means ASML won’t stick its neck out on growth expectations for next year. Market consensus coming into the results was a bit more confident, looking for a 7% uplift in 2026. To meet that, ASML’s order intake needs to pick up significantly, so there are some short-term headwinds.”
Shares in MP Materials surged 20% in Tuesday's session and were up another 4% in pre-market trading on Wednesday, after tech giant Apple (AAPL) announced $500m (£373m) deal to buy rare earth magnets from the company.
Apple said in an announcement on Tuesday that it had entered a multi-year deal with rare earth producer MP Materials, expanding the IPhone maker's US supply chain. It comes as part of Apple's pledge to spend more than $500bn in the US over the next four years.
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The deal will see Apple and MP Materials launch a recycling facility for processing recycled rare earth elements. Once complete, the recycling facility in California will enable MP Materials to take in recycled rare earth feedstock — including material from used electronics and post-industrial scrap — and reprocess it to be used in Apple products.
