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ASML Stock Tumbles 6.71% Amid Semiconductor Sector Slump and Strategic Shift Towards China

Mover TrackerMonday, Mar 10, 2025 7:04 pm ET

1min read

On March 10, asml holding saw a significant decline in its stock as its price fell by 6.71% during the trading day, reaching its lowest point since January 2025. This drop was part of a larger downturn in the semiconductor sector, with companies like broadcom and arm also experiencing notable declines.

ASML, a major player in the chip manufacturing industry, recently announced plans to increase its investment in China, signaling a potential shift in geopolitical strategies amidst ongoing international tensions. This decision includes establishing a new recycling and repair center in Beijing by 2025. Such a move by the Dutch chipmaker is seen as a response to the broader technological landscape shaped by international policies aiming to restrict semiconductor exports to China.

The timing of ASML's announcement is particularly significant given recent legislative efforts by the U.S. to limit China's access to advanced semiconductor technologies. Despite being one of the key players in these international efforts, ASML's commitment to establishing operations directly in China could help maintain its market presence and cater to local demands, effectively countering the restrictive measures.

This strategic decision from asml aligns with the economic interests of the Netherlands, highlighting a nuanced approach to global trade dynamics. The Dutch government's decision likely stems from a combination of factors, including the substantial revenue ASML derives from the Chinese market, which accounted for approximately 36.1% of its global revenue in 2024, surpassing combined figures from the U.S. and South Korea.

Amid a shifting international arena, this development underscores the balance of maintaining important trade relationships while navigating complex geopolitical landscapes. As China continues to enhance its position in global affairs, entities like ASML are strategically aligning with market demands and geopolitical realities, ensuring sustained growth and stability in the semiconductor industry.

Comments

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Alert-Reveal5217

03/11

$ARM I work in the semiconductor field in Silicon Valley and collaborate with various vendors and OEMs. Business is thriving. No signs of a recession, quite the opposite, new production and shipment records are set every week and month. Shorts are spreading fear for their benefit. All semiconductor companies are strong buys, especially with the US bringing the industry back home. It's a strong buy in every way.

CorneredSponge

@Alert-Reveal5217 Agreed, semis are strong.

Hungry-Bee-8340

@Alert-Reveal5217 What’s the outlook for ASML then?

confused-student1028

$ASML I work in the semiconductor industry in Silicon Valley and deal with various suppliers and OEMs. Business is thriving. No signs of a recession; it's the opposite, with new production and shipment records set every week and month. Shorts are spreading fear for their benefit. All semiconductor companies are great buys, especially with the USA bringing the industry back home. It's a strong buy market.

foo-bar-nlogn-100

$AVGO I'm in the semiconductor business in Silicon Valley and work with various suppliers and OEMs. The industry is thriving. No sign of a recession; instead, new production and shipping records are set every week and month. Shorts are just spreading fear to make a profit. All semiconductor companies are great buys, especially with the US bringing more work back home. It's a blessing

BenGrahamButler

$ASML time to ditch the weak hands SELL SELL SELL PANIC PANIC PANIC

-Joseeey-

$ARM SELLING AT A STEAL!

BloodForThCursedIdol

@-Joseeey- I had ARM, sold too early. Regret not holding.

JC-YNWA

@-Joseeey- How long you holding ARM? Any price target in mind?

Buffet_fromTemu

03/10

$AVGO You know you're making a great choice when the company puts out numbers like these: For the three months ending Feb. 2, Broadcom reported adjusted earnings per share of $1.60 on revenue of $14.92B. Analysts predicted EPS of $1.51 on revenue of $14.59B. Q1 AI revenue jumped 77% year-over-year to $4.1B. Looking ahead to Q2, revenues were expected to be $14.9B, surpassing the consensus of $14.73B. Adjusted EBITDA was forecasted to be roughly 66% of projected revenue for 2025. With a forward PE of just 30, this is an excellent buy, especially at these prices. This could easily reach $300 by the end of the year! Super buy!