How and why one of the Europe's biggest technology company has lost $130 billion-plus from its value in less than a year

ASML, Europe's technology giant, has seen a staggering decline in its market value, losing over $130 billion in less than a year. The Dutch company, renowned as the sole producer of extreme ultraviolet lithography (EUV) machines essential for advanced semiconductor manufacturing, has faced a confluence of challenges that have contributed to this financial downturn. These challenges include supply chain disruptions, geopolitical tensions, and a slowdown in global chip demand, which have collectively pressured the company's stock performance. The geopolitical landscape has particularly impacted ASML, with trade tensions between major economies affecting its operations and sales. Restrictions on technology exports to certain markets have limited ASML's growth opportunities, as its EUV machines are crucial for chipmakers worldwide. Additionally, the global semiconductor industry has experienced a cyclical downturn, with reduced demand leading to decreased orders for ASML's high-tech equipment, further exacerbating the company's financial woes. Despite these setbacks, ASML remains a pivotal player in the tech industry, with its EUV technology continuing to be indispensable for the production of cutting-edge chips. The company is actively working on strategies to navigate these challenges, including diversifying its supply chain and exploring new markets to mitigate geopolitical risks. As the tech landscape evolves, ASML's ability to adapt will be crucial in regaining its market position and restoring investor confidence.

— Authored by Next24 Live