The company said that despite a boom in AI-related chips, other parts of the semiconductor market are weaker for longer than expected.

However, ASML warned that its momentum won’t carry over into next year. The company estimated today that its 2025 revenue will range between €30 billion and €35 billion, down from the €30 billion to €40 billion it had projected previously.

ASML shares plunged 15.7% on Tuesday, the worst drop since the chipmaker went public in 2002, after an early earnings release revealed a lowered sales outlook for 2025. View on euronews

ASML on Tuesday offered the first glimpse into how U.S. restrictions on exports of its advanced chip manufacturing tools to China will impact its sales in the Asian country.

A day after a profit warning that rocked the stock market, executives at ASML Holding said the slower-than-expected recovery in the microchip market will have the sharpest impact on sales to China while having a relatively minor impact on sales of its most advanced systems elsewhere in the world.

ASML predicts a decline in China sales by 2025 due to US chip export curbs, emphasising the growing impact of geopolitical tensions on the semiconductor industry.