Strong Q3 Earnings Overshadowed
Despite the negative market reaction, ASML posted stronger-than-expected Q3 earnings. However, the focus remained on the weaker 2025 outlook. As a key supplier in the semiconductor sector, ASML’s cautious guidance raised concerns about a slower recovery, particularly in non-AI segments. “Certain market segments, such as memory chips, are experiencing more sluggish recoveries,” Fouquet noted.
Market Forecast: Bearish Sentiment on Chips
In the short term, semiconductor stocks may face continued pressure as investors adjust to ASML’s downgraded 2025 forecast. The slower-than-expected recovery in non-AI sectors could weigh on chipmakers. However, the long-term growth potential in AI offers some optimism for a rebound once market conditions stabilize. Traders should anticipate volatility, with a bearish outlook prevailing in the near future.