ASML Holding NV saw its shares climb to an all-time high early last week before giving back gains in a sharp selloff that swept through the semiconductor sector on Friday. The Dutch lithography giant's Euronext shares closed at €1,462.20, down 2.39% on the day, while its U.S.-listed shares fell 6.59% to $1,641.74, according to the company's June 5 factsheet. Despite the pullback, ASML's stock still ended the week up 5.57% on Euronext, according to TradingView, after touching a record €1,499.00 on June 4.
Broad Chip Rout Blamed on AI Profit-Taking
The selloff was triggered by Broadcom's disappointing guidance for custom AI chips, which sparked a wave of profit-taking across the sector. The PHLX Semiconductor Index plunged 10.3%, its steepest single-day decline since March 2020, erasing roughly $1.3 trillion in market value from U.S.-listed chipmakers. "Blindly buying the dip had been winning you money, but that ended today," Dennis Dick of Triple D Trading told Reuters. Wells Fargo's Ohsung Kwon described the group as "way overbought."
European Markets Slide
The selloff rippled through European markets, with the STOXX 600 falling 0.3% on Friday and ending the week down 0.5%. Tech stocks were the hardest hit, dropping 2.9% and snapping a two-month rally that had delivered nearly 30% gains. Barron's reported that the Amsterdam AEX index shed 0.4%, while ASM International slipped 4.1% and BE Semiconductor fell 3%.
ASML's Strong Fundamentals Remain
Despite the market turbulence, ASML's business fundamentals remain robust. The company reported first-quarter net sales of €8.8 billion and net income of €2.8 billion in April, while raising its 2026 sales forecast to a range of €36 billion to €40 billion. CEO Christophe Fouquet highlighted that "demand for chips is outpacing supply," driven by AI infrastructure spending and accelerated customer plans. Customer demand for advanced equipment continues to be strong. SK Hynix announced in March that it plans to purchase 11.95 trillion won ($7.97 billion) worth of ASML's extreme ultraviolet lithography tools by the end of 2027. EUV technology is essential for producing cutting-edge chips, and analyst Ryu Young-ho of NH Investment & Securities noted that the machines will be "used for both HBM and advanced DRAM," products tied to AI servers.
Export Risks Loom
However, the bull case faces headwinds from potential U.S.-China export restrictions. Reuters reported in April that a proposed U.S. law could tighten controls on ASML's deep ultraviolet immersion tools if the U.S. and Netherlands impose new China curbs. These DUV machines, while older technology, remain critical for many chip types. ASML has pegged China at 20% of its 2026 sales, and JPMorgan analyst Sandeep Deshpande warned that tougher rules could reduce earnings per share by as much as 10%.
Market Outlook
Traders are now focused on whether the Broadcom-driven selloff will broaden and whether concerns about interest rates in the U.S. and Europe will continue to weigh on expensive growth stocks. Export-control developments remain a key watchpoint. "A bit of pause is warranted!" Carol Schleif, chief market strategist at BMO Private Wealth, told Reuters after Friday's rout. ASML's next earnings report is scheduled for July 15. Until then, the shares are likely to track macroeconomic moves, sector flows, and China-related headlines. The market has demonstrated that even hard-to-find chip stocks can decline when too many investors pile into AI names.
