ASML beats, China worries
ASML reported results that beat expectations and raised 2026 sales guidance, yet its shares fell as investors focused on tightening China restrictions affecting the semiconductor supply chain. The market reaction underscores policy risk in the tools layer of chip manufacturing. (cnbc.com)
ASML beat Wall Street forecasts and raised its 2026 sales outlook on April 15, but the stock still fell as investors focused on tighter China restrictions. (asml.com) (cnbc.com) The Dutch chip-equipment maker reported first-quarter net sales of 8.8 billion euros, net income of 2.8 billion euros and a 53.0% gross margin. It now expects 2026 sales of 36 billion euros to 40 billion euros, up from its earlier 34 billion euro to 39 billion euro range. (asml.com) (cnbc.com) Shares dropped about 6% on Wednesday, April 15, even after the earnings beat. CNBC reported first-quarter system sales to China fell to 19% of total sales, down from 36% in the December quarter. (cnbc.com) ASML sells the lithography machines that print chip circuits, including extreme ultraviolet systems used for the most advanced semiconductors and deep ultraviolet systems used for older process nodes. Europe and the United States have already blocked ASML from shipping its most advanced extreme ultraviolet tools to China, and newer rules have tightened controls on some deep ultraviolet gear too. (cnbc.com) (government.nl) (asml.com) The Dutch government said on September 6, 2024 that, from September 7, more advanced semiconductor manufacturing equipment would require export authorization. The government said the measure built on rules that had already applied since September 1, 2023 and that licenses would be reviewed case by case. (government.nl) That policy fight has widened again in April 2026. Reuters reported last week that United States lawmakers proposed legislation that could further restrict ASML’s sales of deep ultraviolet machines to Chinese chipmakers and limit service and software workarounds. (msn.com) (cnbc.com) ASML said demand from customers building artificial-intelligence infrastructure is still rising. Chief executive Christophe Fouquet said customers had increased their expected short- and medium-term demand, and the company said that strength supported its higher 2026 forecast. (asml.com) The split reaction shows how investors are treating ASML in 2026: as both a proxy for artificial-intelligence chip spending and a company whose China business can change with government decisions. ASML said its 2026 guidance range already reflects “potential outcomes” from ongoing export-control discussions. (asml.com)
