ASML Holding NV ADR (ASML.US) Q1 orders fall short of expectations, warns of tariff uncertainties.

The latest financial report released by the giant lithography machine manufacturer ASML Holding NV ADR (ASML.US) shows that the order volume for the first quarter of 2025 is lower than expected. At the same time, the company also warned that they do not know how to quantify the impact of recent tariff announcements, and these tariffs may disrupt the semiconductor industry. The financial report shows that ASML Holding NV ADRQ1 net sales were 7.742 billion euros, an increase of 46% from 5.29 billion euros in the same period last year. Gross profit was 4.18 billion euros, an increase of 55% from 2.697 billion euros in the same period last year; gross margin was 54.0%, compared to 51.0% in the same period last year. Net profit was 2.355 billion euros, an increase of 92% from 1.224 billion euros in the same period last year. Diluted earnings per share were 6.00 euros, compared to 3.11 euros in the same period last year. New orders in Q1 amounted to 3.936 billion euros, including 1.2 billion euros in EUV orders. The new order value in Q1 was lower than the market's expected 4.82 billion euros. ASML Holding NV ADR is the sole manufacturer of cutting-edge lithography machines. Semiconductor manufacturers use these machines to produce advanced process chips for various products of companies like Apple Inc. (AAPL.US) and NVIDIA Corporation (NVDA.US). With the boom in artificial intelligence, tech giants are making massive investments in chips and data centers, leading ASML Holding NV ADR to project sales between 44 billion and 60 billion euros by 2030. However, concerns have risen about slowing demand for artificial intelligence due to disappointing outlooks from some chip manufacturers and analysts, as well as the impending tariffs in the United States. ASML Holding NV ADR CEO Christophe Fouquet stated, "The recently announced tariffs have increased the uncertainty in the macro environment." He mentioned that the company's "dialogue with customers so far" supports their expectation that 2025 and 2026 will be years of growth driven by artificial intelligence investments. ASML Holding NV ADR outlined various ways in which the US government's tariff measures could impact their business, including additional costs for shipping new systems, tools, and components to the US. Another possible risk is other countries imposing tariffs on goods shipped from the US to those countries. Two weeks ago, US President Trump announced large-scale "reciprocal tariffs," intensifying global trade tensions. Analysts have warned that concerns about economic downturn, weakened consumer demand, and the uncertainty brought by the escalation of trade wars could affect chip demand, thereby impacting the spending plans of ASML Holding NV ADR customers. On Monday, the US Department of Commerce announced that they have initiated an investigation into the impact of "imported semiconductors and semiconductor manufacturing equipment" on US national security, a precursor to tariffs that could further escalate the comprehensive trade war initiated by Trump. Looking ahead, ASML Holding NV ADR expects that net sales for the second quarter of 2025 will be between 7.2 billion and 7.7 billion euros, with a gross margin between 50% and 53%; for the full year 2025, they project net sales between 30 billion and 35 billion euros, with a gross margin between 51% and 53%.