ASML (NASDAQ:ASML) Stock Price Down 2% – Here’s Why

ASML Holding N.V. (NASDAQ:ASML) shares were down 2% during trading on Wednesday . The stock traded as low as $1,530.64 and last traded at $1,550.69. 2,506,474 shares changed hands during trading, an increase of 31% from the average session volume of 1,910,859 shares. The stock had previously closed at $1,582.95.

ASML News Summary

Here are the key news stories impacting ASML this week:

• Positive Sentiment: Analysts view the selloff as excessive. Bank of America reportedly considers China’s emerging immersion DUV capability a limited near-term financial risk and maintains a bullish view, while other analysts see substantial upside based on continued investment in AI, advanced chips and memory manufacturing. ASML Stock Keeps Sliding On China’s Latest Chip Advance
• Positive Sentiment: ASML retains a major technology advantage. China’s domestically produced tools are focused on immersion deep-ultraviolet lithography, while ASML remains the only commercial supplier of the more advanced extreme-ultraviolet systems used for leading-edge chips. Chinese alternatives are therefore not viewed as an immediate threat to ASML’s core EUV franchise. Threat Out of China Creeps Up on ASML
• Neutral Sentiment: Operating fundamentals remain strong. ASML recently raised its 2026 outlook, and demand connected to AI chip production remains robust. Its latest reported quarter included $10.64 billion of revenue and $8.65 in earnings per share, supporting the view that the current pressure is driven more by risk reassessment than by weak execution. Explainer: ASML printers key for the AI chip boom
• Negative Sentiment: China has reportedly begun mass-producing homegrown immersion DUV tools. The development could eventually reduce ASML’s sales to Chinese chipmakers, an important market for its less advanced systems, particularly as U.S. export restrictions already limit access to ASML’s top-tier equipment. Exclusive-China starts production of home-grown immersion DUV chipmaking tools
• Negative Sentiment: Valuation has become a concern. After a roughly 124% gain over the past year, investors are questioning whether AI-related demand is already reflected in ASML’s share price. A premium valuation leaves the stock vulnerable to further profit-taking if China competition or AI spending expectations worsen. Has ASML Holding Priced In Too Much AI Demand?

Analysts Set New Price Targets

ASML has been the topic of a number of analyst reports. Zacks Research lowered ASML from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 3rd. Jefferies Financial Group reissued a “neutral” rating on shares of ASML in a research report on Monday, June 1st. Citigroup restated a “buy” rating on shares of ASML in a research note on Friday, July 17th. Morgan Stanley reaffirmed an “overweight” rating on shares of ASML in a report on Tuesday, July 7th. Finally, Morningstar downgraded shares of ASML to a “sell” rating in a research note on Wednesday, May 27th. Four investment analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, four have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $1,970.33.

ASML Stock Performance

The company has a debt-to-equity ratio of 0.09, a current ratio of 1.33 and a quick ratio of 0.80. The company has a market capitalization of $609.86 billion, a price-to-earnings ratio of 48.25, a PEG ratio of 0.85 and a beta of 1.78. The stock has a 50 day simple moving average of $1,761.08 and a two-hundred day simple moving average of $1,532.11.

ASML (NASDAQ:ASML) last released its quarterly earnings data on Sunday, June 28th. The semiconductor company reported $8.65 earnings per share (EPS) for the quarter. ASML had a return on equity of 52.71% and a net margin of 30.11%.The business had revenue of $10.64 billion during the quarter. As a group, analysts anticipate that ASML Holding N.V. will post 43.6 earnings per share for the current year.

ASML Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, August 5th. Investors of record on Tuesday, July 28th will be paid a dividend of $2.1507 per share. The ex-dividend date is Tuesday, July 28th. This represents a $8.60 annualized dividend and a yield of 0.6%. ASML’s payout ratio is presently 33.51%.

Hedge Funds Weigh In On ASML

Hedge funds have recently added to or reduced their stakes in the stock. Baron Wealth Management LLC raised its position in shares of ASML by 1.8% during the 2nd quarter. Baron Wealth Management LLC now owns 333 shares of the semiconductor company’s stock valued at $662,000 after acquiring an additional 6 shares during the last quarter. Whitener Capital Management Inc. boosted its position in shares of ASML by 2.8% in the 2nd quarter. Whitener Capital Management Inc. now owns 218 shares of the semiconductor company’s stock worth $434,000 after purchasing an additional 6 shares during the last quarter. Family Capital Management Inc. grew its stake in shares of ASML by 0.8% during the fourth quarter. Family Capital Management Inc. now owns 919 shares of the semiconductor company’s stock worth $983,000 after purchasing an additional 7 shares during the period. 44 Wealth Management LLC grew its stake in shares of ASML by 1.1% during the fourth quarter. 44 Wealth Management LLC now owns 657 shares of the semiconductor company’s stock worth $703,000 after purchasing an additional 7 shares during the period. Finally, Evolution Wealth Management Inc. increased its holdings in ASML by 22.6% in the first quarter. Evolution Wealth Management Inc. now owns 38 shares of the semiconductor company’s stock valued at $50,000 after purchasing an additional 7 shares during the last quarter. 26.07% of the stock is currently owned by hedge funds and other institutional investors.

About ASML

ASML Holding N.V. (NASDAQ: ASML) is a Dutch company that develops, manufactures and services advanced photolithography systems used to produce semiconductor chips. Headquartered in Veldhoven, Netherlands, ASML supplies capital equipment and associated software and services that enable semiconductor manufacturers to pattern the intricate circuits on silicon wafers. The company is widely recognized for its leadership in extreme ultraviolet (EUV) lithography as well as its deep ultraviolet (DUV) platforms used across multiple process nodes.

ASML’s product portfolio includes EUV and DUV lithography machines, light sources, imaging optics and control software, together with spare parts, upgrades and field services.