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ASML loses Europe’s top tech firm title to SAP after significant stock decline and guidance cut
ASML Holding NV lost its title as Europe's most valuable technology company to SAP SE after a significant decline in its stock following the cut in a profit outlook. ASML's shares sank 16% on Tuesday to the biggest one-day plunge in 26 years, after the Dutch chip-machine maker reported orders below half of analyst estimates for the third quarter and cited delays in chip plant constructions. The capitalization of the market has declined by more than €60 billion ($65.3 billion) in the last few days for ASML.
Meanwhile, SAP stock has risen by 52% year to date. The cloud revenue witnessed a sharp rise, while demand for AI-based applications has steadied at an escalating level. Its market capital now stands at €261 billion after the share price rose 1.1% to €212.15. It is the first time since 2020 that ASML lost ground to SAP in terms of valuation.
The semiconductor industry is dealing with bigger issues. US limitations on ASML's business in China and cost-cutting measures taken by the key clients, such as Intel and Samsung, have further impacted ASML’s performance. ASML made matters worse for itself when, in error, it released its financial results a day ahead of schedule. Investors are likely to focus on these matters when the company holds an investor call later this Wednesday in Amsterdam.
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