The big turn in tech shares today was largely due to a disappointing guide from Dutch fab-builder ASML. The company accidentally posted results early due to a technical glitch and shares have fallen 17%.
ASML said it expects net sales for 2025 to come in between 30 billion euros and 35 billion euros, that's at the lower half of the range it had previously provided. The company has been hobbled by US sanctions that prevent it from selling its top equipment to China. It's share of sales to China is forecast to fall to 20% from 49%.
“While there continue to be strong developments and upside potential in AI, other market segments are taking longer to recover. It now appears the recovery is more gradual than previously expected,” company CEO Christophe Fouquet said in the earnings release.
The important caveat here is that he doesn't hint at slower AI demand.
Shares of NVDA are down 4.9% while AMD is down 5.1% and the Nasdaq is down 0.8%.
