Tariff Tensions Cloud ASML's Growth Prospects in 2026
ASML, the world's leading chip-making equipment supplier, has voiced concerns that tariff uncertainties may hinder its revenue growth in 2026. Despite surpassing net bookings expectations, shares dropped significantly as chipmakers delay investments due to geopolitical tensions, especially regarding potential U.S. tariffs on European imports.
ASML, a prominent name in the chip-making equipment industry, has expressed apprehensions about its financial growth prospects for 2026 amidst ongoing tariff uncertainties. The caution comes as the company's Chief Financial Officer, Roger Dassen, highlighted delays by U.S. chipmakers on investment decisions due to unclear tariff implications.
The news sent ASML shares tumbling by 10.5%, marking their worst drop since October, and negatively impacted other industry players like ASM and BESI. This decline occurred despite ASML reporting net bookings 25% above industry expectations, totaling 5.54 billion euros, surprisingly outperforming analyst predictions.
At the heart of the issue are the geopolitical uncertainties surrounding tariffs, particularly a potential 30% U.S. tariff on European goods, which could significantly inflate costs. ASML's leadership conveyed the company's intent to transfer such expenses, emphasizing the need for clarity as a prerequisite for customer investment decisions.
(With inputs from agencies.)
- READ MORE ON:
- ASML
- chip-making
- two company
- geopolitical
- tariffs
- shares
- revenue growth
- chipmakers
- U.S.
- 2026
ALSO READ
Sambhv Steel Tubes shares jump over 34 pc in market debut trade
Asian Paints shares decline nearly 2 pc in morning trade
GLOBAL MARKETS-Asian stocks waver, dollar sags under weight of Trump tariffs, Fed uncertainty
GLOBAL MARKETS-Stocks inch up, dollar struggles under weight of Trump tariffs, Fed uncertainty
UPDATE 1-European shares rise; investors await signs on trade progress
Google News