Why did ASML stock drop down today? Micron sends sector tumbling
ASML Holding (NASDAQ:ASML) shares fell nearly 6% on Friday after Micron Technology (NASDAQ:MU) issued weak guidance that hit the entire sector and worries over spending on chip equipment tools were renewed.
On Thursday, Micron (MU) warned that fourth-quarter revenue would be well below Wall Street estimates, as it expects sales to be between $6.8B and $7.6B, with adjusted earnings per share between $1.43 and $1.83 per share. Analysts were expecting Micron (MU) to generate $9.05B in revenue and adjusted earnings of $2.62 per share.
Micron (MU) Chief Executive Sanjay Mehrotra said industry demand had weakened "recently," citing weakness in PCs and smartphones. He said the company would take actions to moderate supply growth in fiscal 2023.
Chip equipment makers such as Lam Research (LRCX), Applied Materials (AMAT) and KLA Corp. (KLAC) all fell nearly 7% after Bank of America analyst Vivek Arya warned that Micron's decision to cut spending on tools would impact the trio.
Last month, it was reported that Taiwan Semiconductor (TSM) would have access to the next version of ASML's (ASML) most advanced chip making tool in 2024.