The quarterly updates of ASML, a critical supplier to the semiconductor industry, are vital to understanding the state of that industry.

STORY: Semiconductor stocks recovered some ground on Wednesday, after a downbeat forecast from chip equipment maker ASML sparked a global tech selloff.Europe's biggest tech company, which supplies machines that make semiconductor chips,

JoAnne Feeney of Advisors Capital Management joins Ed Ludlow and Caroline Hyde to discuss the investor outlook on tech and semiconductor demand as ASML provides a weak outlook and ahead of TSMC earnings.

At $730 per share, ASML stock looks reasonably valued at 27 times forward earnings. However, it could remain under pressure until it overcomes its near-term headwinds and its bookings growth accelerates again. So if you already own ASML stock, it's smarter to simply hold it and ride out the cyclical downturn instead of selling it.

Investors and analysts are reviewing their assessments of computer chip equipment maker ASML, they said on Wednesday, after the company cut 2025 financial guidance, citing weakness in markets other than AI and delayed orders.

Global semiconductor stocks are facing a fresh gut check after Netherlands-based ASML warned that sales were looking sluggish. The announcement, which was mistakenly released a day early, triggered combined market value losses for an index of US-traded chipmakers plus the largest Asian stocks of more than $420 billion.

ASML provides crucial equipment for semiconductor manufacturing, but its recent earnings should not scare off investors.

Investors and analysts are looking sceptically at computer chip equipment maker ASML, they said on Wednesday, after the company cut 2025 financial guidance, citing weakness in markets other than AI and delayed orders.