What's Going On With ASML Holding Stock?

ASML Holding NV ASML shares were down 2.22% to $661.43 at market close Wednesday following news of Donald Trump's victory in the 2024 U.S. presidential election.

Trump’s return to office, coupled with a Republican majority in the Senate and a lead in the House of Representatives, has raised concerns over renewed trade tensions and the possibility of aggressive tariffs.

What To Know: During his campaign, Trump proposed a 60% tariff on Chinese goods, along with a universal 10% tariff on all imports to the U.S. This policy direction is worrying for global technology companies, including ASML, as its advanced lithography machines are essential to semiconductor production worldwide.

ASML's products are already impacted by U.S.-China trade policies, given the semiconductor industry's reliance on complex international supply chains. ASML, which is headquartered in the Netherlands, sells its equipment globally, including to Chinese companies — a significant revenue stream now facing increased uncertainty.

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What Else: The potential for additional restrictions on U.S. companies doing business with Chinese firms under Trump's administration could also hurt ASML's business indirectly. If U.S.-based tech giants face hurdles in the Chinese market, their demand for advanced lithography machines from ASML may diminish.

Additionally, rising economic and political tensions could fuel an ongoing shift in tech supply chains as companies reassess global expansion plans and sourcing, a trend that could complicate ASML's growth strategy over the long term.

Market analysts at JPMorgan Chase & Co underscored Trump's proposed tariffs are likely to be "a direct headwind to global technology trade," which could hit companies like ASML more acutely than other sectors.

Given ASML's reliance on global market stability and free trade to maintain its dominance in semiconductor manufacturing equipment, the return of protectionist trade policies under Trump's administration raises significant concerns about the company's medium- to long-term outlook.

According to data from Benzinga Pro, ASML has a 52-week high of $1,110.09 and a 52-week low of $633.80.

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