Trump's EU Tariffs Impacts Chip Equipment Giant ASML, Stock Hits 52-Week Low

Dutch advanced chipmaking equipment supplier ASML Holding NV (NASDAQ:ASML) stock fell to its 52-week low, hitting $597.69, on Friday after President Donald Trump imposed a 20% tariff on products from the European Union.

ASML makes the most advanced machines used in chip production, known as extreme ultraviolet, or EUV, lithography tools to produce the chips necessary for high-end smartphones and computers, Bloomberg reports.

The EUV lithography market was worth $10.09 billion in 2023 and could reach $35.70 billion by 2032, implying a CAGR of 15.1% from 2024 to 2032.

Also Read: Samsung’s China Chip Pivot Gains Steam With 54% Export Surge Amid US Market Struggles

The near-term direct impacts could be limited, Thornburg Investment Management told Bloomberg. In 2024, about 16% of ASML’s net sales came from customer facilities in the U.S..

Still, ASML customers, including Intel Corp (NASDAQ:INTC), Taiwan Semiconductor Manufacturing Corp (NYSE:TSM), and Samsung Electronics Co (OTC:SSNLF), are ramping up their U.S. operations courtesy of the 25% investment tax credit in the U.S. under the 2022 Chips and Science Act.

Dutch Foreign Trade Minister Reinette Klever told Bloomberg that the EU is exploring retaliatory measures.

Reportedly, ASML plans to quintuple Japan maintenance staff as EUV machine demand surges with Rapidus and global chip expansion.

ASML Holding stock has plunged ~36% in the last 12 months. The company disclosed in its annual report that the U.S. semiconductor sanctions on China hurt 2024 demand, with China making up 36% of its sales.

ASML Stock Prediction For 2025

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at ASML Holding, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For ASML Holding, the 200-day moving average sits at $788.16, according to Benzinga Pro, which is above the current price of $608.0. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

Price Action: ASML stock is up 2.51% at $607.60 at the last check Friday.

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