ASML Holding NV, the world's leading semiconductor equipment manufacturer, saw its stock plummet 7.14% in pre-market trading on Wednesday following the company's cautionary outlook for 2026 and narrowed guidance for 2025. The Dutch tech giant's shares faced significant pressure as investors reacted to the company's latest financial projections and warnings about future growth.

In its second-quarter earnings report, ASML revised its 2025 guidance, now expecting sales growth of approximately 15% to around €32.5 billion, down from the previous range of €30 billion to €35 billion. The company also adjusted its gross margin forecast to about 52%, compared to the earlier projection of 51% to 53%. More concerning for investors was ASML's statement that it could no longer guarantee growth in 2026, citing increasing uncertainties in the macroeconomic and geopolitical landscape.

ASML CEO Christophe Fouquet emphasized the challenges ahead, stating, "We continue to see increasing uncertainty driven by macro-economic and geopolitical developments. Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage." The company's cautious stance comes amid rising tensions between the United States and the European Union, with President Trump threatening to impose 30% tariffs on EU imports beginning August 1. This development has cast a shadow over ASML's future prospects, as the company supplies critical chip-making equipment to major U.S. clients like Intel. The ongoing uncertainty surrounding potential semiconductor-specific tariffs under the Section 232 investigation has further complicated ASML's outlook, prompting the company to adopt a more conservative stance on its future growth projections.