Why ASML Stock Is Falling Today

AI-related stocks fell globally after industry leaders warned of potential risks. Nvidia, AMD, Micron, and others declined. OpenAI's Altman postponed an IPO. Concerns include AI misuse and economic impact. Some investors dismiss warnings, citing growth prospects. Anthropic plans a public debut with Nvidia as a potential investor.

AI stocks declined after Anthropic CEO Dario Amodei called for a slowdown in AI development, supported by OpenAI's Sam Altman and Elon Musk. Concerns over potential industry-wide impacts led to drops in shares of SK Hynix, Samsung, SoftBank, ASML, and U.S. semiconductor firms like Micron and Nvidia. President Trump opposed the calls for regulation.

European AI-related semiconductor companies faced a sell-off, with ASML down 5.2% and Soitec down 12.6%, after calls for a slower pace in AI development. Soitec had recently upgraded its revenue guidance, but investors are now questioning the sustainability of the AI infrastructure boom. ASML's stock has also rallied due to expected AI spending. The sell-off reflects concerns about future demand and higher bond yields making growth stocks more vulnerable.

Applied Materials (AMAT) and Lam Research (LRCX) fell 6% each, while ASML (ASML) dropped 5% as AI CEOs called for slower model development, raising concerns about chip equipment demand. Applied Materials reported record Q3 revenue of $9.12B, up 25%, but investors question growth sustainability. The SOXX semiconductor ETF declined 5%, while the broader market (SPY) fell 0.5%.

ASML is exploring ways to produce over 110 EUV chip-printing tools in 2028, according to JPMorgan analysts. The company has strong demand, with most orders for 2028 deliveries. ASML's production limit is its assembly speed, not the supply chain. Intel and new customers, including Musk's Terafab, are expected to increase orders. Sales to Chinese memory chip makers will grow in 2027.

ASML (NASDAQ:ASML) shares fell 6.17% over the past month to $1,698.30, despite strong Q2 revenue growth and raised 2026 guidance. Bernstein analyst Stacy Rasgon raised the price target to $2,859, implying 68% upside, citing ASML's monopoly in EUV technology and AI-driven demand. The company's peers, including Applied Materials, Lam Research, and KLA, also saw declines. ASML's consensus price target is $2,157.87, suggesting 27% upside.