ASML's (NASDAQ: ASML) stock plunged 13% on July 17 amid three major developments for the Dutch semiconductor equipment maker.
First, it followed up its second-quarter earnings beat with soft guidance for the third quarter. Second, several reports indicated the Biden administration would further tighten its restrictions on semiconductor equipment sales to China. Lastly, former President Donald Trump commented that Taiwan -- the world's largest producer of chips and ASML's biggest single market -- should pay the U.S. for military protection against China.
These developments sent shockwaves through the semiconductor sector and sank ASML, the world's leading producer of lithography systems. Let's review the bear and bull cases to see if that pullback represents a buying opportunity.
Source Fool.com