Why ASML's Dire Warning Could Be a Blessing in Disguise for This Chip Stock
Dutch semiconductor bellwether ASML (NASDAQ: ASML) sent a dire warning to the semiconductor industry when it released its third-quarter 2023 results on Wednesday.
The company, which is known for providing critical semiconductor manufacturing equipment and holds a monopoly-like position in the extreme ultraviolet (EUV) lithography market, saw a sharp decline in bookings and issued a tepid forecast for 2024. ASML anticipates 2023 sales to increase by 30%. However, management is worried that a sharp slowdown in the demand for its semiconductor equipment next year could scupper its growth trajectory.
ASML forecasts flat revenue in 2024, pointing out that "customers continue to be uncertain about the shape of the demand recovery in the industry." What's worse is that the slowdown in demand for ASML's chipmaking equipment seems to have set in already. The company posted net bookings worth 2.6 billion euros last quarter.
Source Fool.com
