ASML shares declined 3.6% to trade at €1,569 as selling spread through European semiconductor stocks following a tepid market response to Samsung Electronics’ preliminary second-quarter results.
Although Samsung reported record profits for the quarter, the results did not top the lofty expectations already priced into the stock. That shortfall precipitated a marked selloff in Asian chip names and led to a trading halt on South Korea’s Kospi index, which fell 7% over the session. The shockwaves from that drop fed directly into Europe’s semiconductor complex, weighing on equipment suppliers including ASML.
On the analyst front, Bernstein delivered a notable bullish note on ASML, raising its price objective to €2,300 from €1,700 while keeping an Outperform rating. The firm also lifted its EUV shipment projections to 91 units for 2027 and 113 units for 2028, citing AI-driven expansion in advanced logic and DRAM capacity as the driver behind the higher forecasts. That positive assessment helped temper the share decline but was not sufficient to erase the sector-wide pressure.
Investor caution was amplified by the calendar: ASML is due to report second-quarter results on July 15, and some market participants appear to be repositioning ahead of that release. That pre-earnings activity contributed to the downward momentum in the stock.
The broader market picture was mixed. Major U.S. benchmarks pointed to a risk-on tone - with the S&P 500 up 0.7% and the Nasdaq rising 1.1% - underscoring that ASML’s weakness was largely a sector-driven event rather than part of a global selloff. In Amsterdam, the AEX index followed the European chip sector lower, reflecting the spillover from the Asian semiconductor slump.
Market observers also noted a rotation in investor attention away from chipmakers and toward hyperscalers, a shift that has compressed near-term sentiment for equipment suppliers. Together, the combination of Samsung’s underwhelming preliminary results, the cascade of selling across Asian and European chip stocks, pre-earnings caution ahead of ASML’s July 15 report, and a valuation that remains elevated versus peers set the stage for today’s pullback.
Nevertheless, the company’s longer-term fundamentals were described as unchanged in the market narrative: ASML retains a strong order backlog and an unrivalled position in EUV lithography, characteristics that support its structural outlook despite the short-term volatility.
Summary
ASML slipped after market participants reacted negatively to Samsung’s preliminary Q2 results. The episode triggered a broader selloff in semiconductor shares from Asia to Europe, compounded by pre-earnings repositioning ahead of ASML’s July 15 report, even as Bernstein raised its price target and shipment forecasts for the company.
Key points
- ASML stock fell 3.6% to €1,569 amid sectorwide selling triggered by Samsung’s preliminary Q2 results.
- Bernstein raised its ASML price target to €2,300 from €1,700 and increased its 2027 and 2028 EUV shipment forecasts to 91 and 113 units, respectively, while retaining an Outperform rating.
- Sector contagion from Asia and pre-earnings positioning ahead of ASML’s July 15 report weighed on sentiment; U.S. indices showed a risk-on tone, indicating the move was largely sector-specific.
Risks and uncertainties
- Pre-earnings repositioning ahead of ASML’s July 15 report may add to near-term volatility for ASML and other equipment suppliers.
- Continued contagion from Asian semiconductor share moves could keep pressure on European chip and equipment stocks.
- Near-term sentiment for equipment suppliers may remain compressed if investor focus shifts further toward hyperscalers away from chipmakers.