Shares of ASML Holding NV (ASML), a leading supplier of semiconductor manufacturing equipment, plunged 6.41% in intraday trading on Monday, as investors grew increasingly concerned about the potential impact of tightening US export restrictions on the company's business with China.
The sell-off in ASML's stock comes amid reports that the Biden administration is considering further restrictions on the export of advanced semiconductor manufacturing equipment to China. As a key player in the semiconductor industry, ASML could be significantly affected by such measures, as China is a major market for its products.
According to analysts, ASML's guidance for the third quarter fell short of expectations, with the company citing fears of an expansion of US restrictions on semiconductor exports to China as a contributing factor. The company's management predicted 7-17% quarter-on-quarter growth, below the consensus estimate, reflecting the potential impact of these restrictions on its business.
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