China Sales Decline as a Catalyst

8 days ago

Parkev Tatevosian, CFA

"But it wasn't all good news for ASML and ASML stock investors. They do expect to see China customer demand and therefore their total net sales in China to decline significantly in 2026 compared to their very strong business there in 2024 and 2025. So, they're telling investors they saw outsized sales in 24 and 25 and they expect that to decline significantly in 2026. This could be many customers front-loading their purchases of ASML products in China, fearful of inventory availability or restrictions, etc. And so, they frontloaded, they bought as much as they could get their hands on."

The speaker notes that ASML is expecting a significant decline in net sales in China in 2026 compared to previous years due to customers front-loading their purchases. This commentary adds a risk factor to consider for the stock, reflecting potential headwinds from reduced sales in that particular market.

Related Stocks