ASML's Profits Plunge 40% Amid Dip in Chipmaking Tool Orders

ASML Holding NV, Europe’s most valuable technology firm, experienced a 61% drop in orders in the first quarter, missing analyst estimates, as major chipmakers like TSMC and Samsung held off on purchasing the Dutch company’s advanced machines due to a slowdown in demand for hardware used in smartphones, computers, and cars. The decline in orders, particularly for its top-end extreme ultraviolet machines, led to a 4.1% drop in ASML shares. The company also forecasted sales below analyst expectations for the current quarter, citing a weaker industry outlook. Geopolitical pressures and export control measures targeting China's chip ambitions further impacted ASML's sales, while the incoming CEO faces the challenge of balancing these pressures and satisfying shareholders.