ASML Shares Fell 12% in October Despite Record Quarterly Sales

ASML Holding N.V. shares fell 12% in October despite a record third quarter and higher full-year guidance, as semiconductor stocks retreated amid concerns about inflation and returns on AI spending.

ASML reported third-quarter 2026 net sales of €11.7 billion and net income of about €5 billion. Both figures exceeded expectations, and the quarter was the strongest in the company’s history. ASML raised its 2026 sales outlook to €44 billion to €45 billion.

The shares dropped 6.9% on Oct. 22 and ended the month down 12%. The decline came during a wider pullback in AI and semiconductor stocks. Intel issued a disappointing fourth-quarter outlook, while Lam Research flagged supply constraints. Inflation concerns and questions about whether large AI investments will generate adequate returns also formed part of the market backdrop.

ASML makes equipment used to manufacture semiconductors. Its extreme ultraviolet lithography systems, which help produce leading-edge logic and memory chips, accounted for 49% of its system sales in the quarter. The systems were sold out until 2028.

The results followed a period of investor focus on whether AI demand was translating into stronger equipment sales and orders. An ASML Oct. 14 results preview highlighted those questions ahead of the company’s release.

For the fourth quarter, ASML projected sales of €14.2 billion to €15.2 billion and a gross margin of about 56% to 57%.