ASML’s Market Value Plummets by $130 Billion
ASML, a crucial player in the semiconductor supply chain and one of Europe’s largest technology companies, has experienced a significant decline in its market value. The Dutch company’s market capitalization dropped from a peak of $429.5 billion in July 2024 to $297 billion by May 2025, according to S&P Capital IQ data.
The decline is primarily attributed to U.S. export restrictions imposed on China and uncertainties surrounding potential U.S. tariffs under President Donald Trump’s administration. ASML, being the sole producer of extreme ultraviolet lithography (EUV) machines used by major chipmakers like TSMC, has faced headwinds due to its inability to ship these advanced machines to China.
“All the equipment manufacturers in the space have come down because they are concentrating all the fears around… the U.S. restrictions to China,” stated Stephane Houri, head of equity research at ODDO BHF, in an interview with CNBC’s ‘Europe Early Edition’. Houri also highlighted concerns regarding potential tariffs and questions about over-investment in AI, noting uncertainty over whether “demand is not at the level that many people expect.”
ASML’s CEO, Christophe Fouquet, had previously informed CNBC in January that the company’s China business was expected to shrink in 2025 compared to 2023 and 2024. Although ASML has begun shipping its next-generation High NA machines, global chip stocks continue to face pressure from trade uncertainties.
Despite these challenges, analysts remain optimistic about ASML’s prospects. LSEG data indicates an average price target of 779 euros for ASML, suggesting a potential 17% upside from its closing price. A recent note from Wells Fargo, following discussions with ASML’s management, highlighted the company’s positive outlook for 2025 and 2026, driven by demand from firms like Samsung and Intel for next-generation chipmaking tools.
A potential U.S.-Europe trade deal could alleviate market concerns. According to Houri, “If there is an agreement in the end with President Trump and… Europe and many other countries, they probably will benefit from the relief in the market, and notably in the sector.”
