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ASML confirmed its sales drop in a recent report. Because of this, chip stocks were dragged down on Wednesday, Apr. 17. The Dutch semiconductor manufacturer equipment provider announced that its bookings fell drastically during the first quarter of 2024.

ASML's Sales Drop Drags Chip Stocks Down

According to CNBC's latest report, ASML's bookings dropped by 61% sequentially. The Dutch semiconductor equipment manufacturer generated $5.36 billion in sales.

This is below the prediction of financial analysis software firm Visible Alpha, which estimated that ASML would generate $5.77 billion in sales. Although this is the case, the tech firm's net income surpassed expectations.

ASML reported $1.30 billion or EPS (earnings per share) of $3.31. This is higher than the predictions, which stated that ASML would have a net income of $1.18 billion or EPS of $3.01, as reported by Investopedia.

But, its sales drop took a toll on semiconductor stocks. On Wednesday's trading day, AMD's stock dropped by 4%, Intel's shares fell by 2%, Qualcomm's stocks fell by 2%, and Nvida's shares dropped by around 3%. The most affected one is Arm, with shares dropping by 10%.

ASML CEO Still Optimistic

Despite the massive sales drop, ASML CEO Peter Wennink is still optimistic for 2024. He said they see this year as a transition period, during which the semiconductor firm will continue increasing its capacity and investing in technology.

Previously, ASML said that it expected sales to be flat in 2024 compared to 2023. But, the company added that they expect their sales to improve significantly during the second half of the year.