ASML looks to calm fears over 2026 growth as it warns of China sales decline

Core Viewpoint - ASML is addressing concerns regarding its growth in 2026, particularly highlighting a significant expected sales decline in China, while assuring that total net sales in 2026 will not fall below those of 2025 [1][2]. Financial Performance - ASML reported net sales of 7.516 billion euros, which was below the expected 7.79 billion euros, while net profit was slightly above expectations at 2.125 billion euros compared to the forecast of 2.11 billion euros [6]. Market Context - The company has faced challenges due to domestic export restrictions in the Netherlands and U.S. tariff policies, impacting the semiconductor industry [2]. - Analysts from Morgan Stanley, UBS, and Jefferies have recently upgraded ASML's stock, citing growth drivers such as the expansion of AI chip foundries and increased semiconductor manufacturing in China [3]. - The anticipated $5 billion deal between Nvidia and Intel is expected to boost demand for semiconductor equipment, benefiting ASML [4].