Tariff Turbulence: ASML's 2026 Growth Uncertainty Looms
ASML, a leading supplier of chip-making equipment, may not see growth in 2026 due to U.S. tariff uncertainties impacting chipmakers' investment decisions. Potential tariffs could raise equipment costs and delay investments, leading to stock declines. Despite solid demand and bookings, geopolitical issues cloud future growth forecasts.
ASML, the premier supplier of computer chip-making equipment globally, has signaled potential stagnation in its 2026 growth projections as U.S. chipmakers hold off on finalizing factory investments amidst looming tariff concerns.
The uncertainty surrounding tariff negotiations is causing delays, with ASML shares plummeting by up to 7.8%, prompting similar declines for its peers. Tariffs could inflate the price of high-end machines from 250 million to 325 million euros, according to CFO Roger Dassen.
Despite a strong quarter with net bookings reaching 5.54 billion euros, ASML's prospects remain uncertain due to geopolitical tensions. The company's ETUV lithography machines continue to see strong demand, driven by AI and sustained Chinese interest.
(With inputs from agencies.)
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