Semiconductor stocks fell on Tuesday, October 15, because ASML significantly lowered next year's performance expectations, and there were reports that the USA is considering restricting chip exports from some US companies.

Europe's most valuable technology company, ASML, plummeted by 16%, marking its largest single-day drop since 1998. Other chip stocks quickly followed suit, with NVDA dropping nearly 5% and AMD falling by 5.2%.

Dutch semiconductor machinery manufacturer ASML released a pessimistic profit report and lowered next year's sales expectations, triggering a decline in the industry. The forward-looking guidance in the report downgrades the total net sales for 2025 to between 30 billion euros and 35 billion euros, below the previously mentioned range, citing weak demand for its machinery from chip manufacturers.

CEO Christophe Fouquet stated in a declaration: "It now appears that the recovery is much slower than previously expected. This trend is expected to continue until 2025, leading to cautious customers."

According to Bloomberg's survey, ASML's order value for the third quarter was 2.6 billion euros, less than half of the average expected 5.39 billion euros.

The report was released a day earlier than expected, further increasing the surprise factor and lower guidance of the performance.

Due to concerns over the return on the substantial investment in the field of artificial intelligence, inflows into AI stocks slowed down this summer. However, investment in this sector has rebounded in recent weeks, driving Nvidia's stock price to a new high on Monday, helping the S&P 500 index reach a record closing high.

There are reports that the USA is considering restricting chip exports from US chip manufacturers, which will only exacerbate the already volatile situation in the industry this week.

According to Bloomberg, the Biden administration has been negotiating to restrict some American chip companies, including Nvidia, from selling advanced artificial intelligence chips to certain countries in order to protect national security.

Sources told the media that these plans may target the Gulf countries that are increasingly interested in artificial intelligence, and will further strengthen the existing restrictions originally aimed at curbing the progress of some countries in the field of artificial intelligence.

Previous restrictive measures have regulated chip exports to over 40 countries in the Middle East, Africa, and Asia.