Global chip stocks erase $420 Billion after ASML sales warning

Investors in chip stocks faced significant losses after ASML Holding NV, a key supplier of chipmaking equipment, cut its 2025 sales outlook due to weakness in non-AI sectors.

The company's shares dropped 5%, erasing €50 billion from its market value, and contributing to a $420 billion global market loss. ASML’s peers, including Tokyo Electron and Taiwan Semiconductor, also declined.

While AI demand remains strong, reduced orders from chipmakers and China’s potential economic revival may impact the sector. Analysts view ASML's challenges as possibly company-specific, with broader recovery prospects still intact.