ASML, a big company from the Netherlands that makes machines for microchips, has often affected the stock market with its earnings reports.
This week, people are watching even more closely because of concerns about AI (artificial intelligence) microchips. On Monday, a low-cost Chinese AI chatbot called DeepSeek raised worries about demand for these chips. ASML will announce its latest financial results on Wednesday morning, and investors are paying close attention.
On Monday, ASML’s stock price dropped 7%, its worst single-day loss since October 15. That day, the company made a mistake when announcing lower profits on its website.
Experts think ASML will report a 29% profit increase for the fourth quarter, with sales growing by 25%. The company likely shipped 122 of its large chip-making machines and received orders worth about €3.99 billion ($4.2 billion).
Back in October, ASML predicted its sales for 2025 would be between €30 billion and €35 billion.
Some experts, like analysts from Citi, believe the drop in ASML’s stock price happened because of DeepSeek. They also think investors are expecting fewer orders than analysts predict, with some worried orders could be as low as €2 billion. This means ASML might not have to do as well as expected to meet investor hopes.
The bigger picture is that AI chip demand might shift from huge, powerful computers in data centers to many smaller, cheaper, and more efficient devices. This change isn’t all bad for the industry, but it will take time to understand how it affects companies like ASML.