From ASML earnings. This echos what the Mu call said.
Weakness in PC and consumer products not offset by AI demand. Recover in PC and consomer recovery potentially next year and not this year.
Second data point saying this. Negative overall for semiconductors.
>>>>>>>>
"The Motley Fool
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Why ASML Holdings Fell Today
By Billy Duberstein – Jul 19, 2023 at 3:30PM
KEY POINTS
ASML beat revenue and earnings expectations, and raised full-year guidance.
However, cautious commentary on the slope of the chip recovery and increased China sales were cause for concern.
After a strong year-to-date run, investors took profits.
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The lithography giant beat earnings expectations and raised guidance but offered cautious commentary around the chip recovery and China relations.
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What happened
Shares of lithography giant ASML Holdings (ASML -5.45%) were down in Wednesday trading following its second-quarter earnings report, falling 5.1% as of 2:56 p.m. ET.
ASML broadly beat consensus figures while raising its full-year guidance. However, management's commentary was more subdued, and some of the guidance raise was due to an accounting change regarding its fast shipments to customers. Furthermore, the quarter's strength appeared concentrated in the China market, which may be at risk of further sanctions.
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NASDAQ: ASML
ASML
Today's Change
(-5.45%) -US$41.25
Current Price
US$715.78
So what
In Q2, ASML posted revenue growth of 27.8% to 6.9 billion euros ($7.3 billion) compared with expectations for 6.74 billion euros ($7.6 billion), and net-profit growth of 35% to 1.9 billion euros ($2.13 billion) compared with analyst expectations for 1.82 billion euros ($2.04 billion). Furthermore, management raised its full-year revenue-growth guidance from over 25% to around 30%.
So, what exactly was the problem here? Well first, ASML has recovered nicely this year from last year's sell-off, posting a 31% gain year to date, even factoring in today's sell-off. So it may have been due for some profit-taking.
Second, the composition of revenue gains and commentary from management might have given investors pause.
In the video interview with CEO Peter Wennink, Wennink noted that while many chip markets are bottoming out, a recovery may be pushed out from later this year to next year. This is in spite of generative AI growth, as larger and more mature markets like PCs and smartphones are still feeling economic pressure from high interest rates and recession fears. Furthermore, Wennink noted some customers are pushing out extreme ultraviolet (EUV) orders, as new semiconductor fabrication plants (fabs) aren't yet ready due to the lack of expertise needed to get leading-edge fabs up and running. "
fool.com
Why ASML Holdings Fell Today
By Billy Duberstein – Jul 19, 2023 at 3:30PM
KEY POINTS
ASML beat revenue and earnings expectations, and raised full-year guidance.
However, cautious commentary on the slope of the chip recovery and increased China sales were cause for concern.
After a strong year-to-date run, investors took profits.
10 stocks we like better than ASML |
