ASML (NASDAQ:ASML) saw its share prices plummet Wednesday, as the company, one of the world’s most important semiconductor equipment firms, posted a jump in revenue and profit in the second quarter, but warned of macroeconomic “uncertainties” ahead.
The Dutch company makes expensive machines that are required to manufacture the world’s most advanced chips. It counts giants like TSMC, the world’s biggest contract semiconductor maker, among its customers.
But ASML has also been caught in the middle of the U.S.-China technology battle because of the importance of the tools it makes.
Net sales proved to be 6.9 billion euros ($7.7 billion U.S.), compared with 6.72 billion euros expected. That represents a 27% year-on-year rise.
Net profit registered 1.9 billion euros, versus 1.82 billion euros expected. That marks a 37.6% year-on-year increase.
ASML said it expects net sales in the third quarter of this year to sit between 6.5 billion euros and 7 billion euros.
The company also raised its outlook for 2023, now anticipating its net sales this year to grow 30% year-on-year, up from a 25% growth estimate previously.
ASML said that the brighter outlook is due to strong revenue from its deep ultraviolet (DUV) lithography machine, which is used to manufacture memory chips. These go into various devices, from smartphones to laptops and servers, and could ultimately be used for artificial intelligence applications.
ASML shares tumbled $27.99, or 3.7%, to $729.06.
Tech Insider
