ASML Shares Drop on China DUV Report Despite Strong Earnings

Bernstein’s $2,623 price target for ASML suggests 50% upside after a 7% pullback tied to China’s DUV tool production. ASML fell over 7% intraday on July 27, 2026, after reports that a Chinese state-backed firm began mass-producing immersion DUV lithography tools. The decli

Bernstein’s $2,623 price target for ASML suggests 50% upside after a 7% pullback tied to China’s DUV tool production.

ASML fell over 7% intraday on July 27, 2026, after reports that a Chinese state-backed firm began mass-producing immersion DUV lithography tools. The decline erased gains from a Q2 earnings beat, where revenue rose 21% and full-year guidance was raised to €43 billion-€45 billion.

Peers AMAT and KLAC also dropped 5-10% on China-related concerns, but their implied upside of 17% pales next to ASML’s 50% gap to Bernstein’s $2,623 target. The stock currently trades at $1,740.99, with sentiment scores plunging to -0.807 amid chatter of tighter U.S. export restrictions.

ASML’s order book, a key indicator for AI-driven semiconductor capex, remains robust despite the sell-off. The company’s dominance in EUV and DUV lithography systems keeps it critical for advanced chip production, including sub-3nm logic and next-gen HBM memory.

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