ASML stock fell over 5% as new export bans impacted its sales in China. The semiconductor equipment maker reported its China segment shrank as a percentage of net system sales. Despite this, ASML raised its 2026 net sales forecast to a range of $42.46 billion to $47.18 billion, citing strong demand for its advanced chipmaking machines fueled by AI infrastructure investments.
Shares of ASML dropped on Wednesday following a decline in its China business due to new export controls. The company’s stock was down more than 5% as its China segment represented a smaller portion of net system sales.
A bipartisan group of U.S. lawmakers recently proposed a bill to halt ASML‘s sales of DUV machines to Chinese chip companies. This legislation threatens to further affect the Dutch firm’s already shrinking revenue from the region.
While ASML has long been prohibited from selling its most advanced EUV machines to China, it has historically sold lower-end deep ultraviolet (DUV) chipmaking equipment there. The potential ban directly targets this significant revenue stream, unsettling investors.
CEO Christophe Fouquet noted in the company’s quarterly results release that “Demand for chips is outpacing supply.” He stated customers are accelerating capacity expansion plans for 2026 and beyond.
ASML subsequently increased its financial guidance for 2026. The updated net sales forecast is now between $42.46 billion and $47.18 billion.
The company’s confidence stems from sustained demand for its highest-end EUV machines, which are essential for manufacturing the most advanced AI chips. “The semiconductor industry’s growth outlook continues to solidify, driven by ongoing AI-related infrastructure investments,” Fouquet added.
