ASM International drops 8% as 2027 revenue guidance underwhelms

ASM International NV shares slumped more than 8% after its 2027 revenue guidance of as much as 4.6 billion euros fell short of analyst expectations for the chip-equipment supplier.

Investor expectations for companies exposed to artificial intelligence have kept rising, making it harder for even positive outlooks to satisfy the market, according to the Wall Street Journal. The Dutch group, which supplies chip makers with wafer processing equipment for thin-film deposition, in September set a 2027 revenue target between 3.7 billion euros and 4.6 billion euros, equivalent to $4.21 billion to $5.24 billion.

The company forecast third-quarter revenue of 1.1 billion euros ($1.3 billion) on a constant currency basis, with a range of 5% above or below that level. That compares with the average analyst estimate of 1.04 billion euros, according to data compiled by Bloomberg. The Q3 forecast signals that AI infrastructure build-out continues to drive demand for ASM's tools.

The selloff erased some of the gains the stock had made since January, as the market punished the company for not exceeding already elevated expectations. The guidance miss may weigh on sentiment across the semiconductor equipment sector, potentially dragging down peers such as ASML Holding and Applied Materials as investors reassess demand signals in the chip manufacturing supply chain. ASM International reports its next quarterly results in October, when investors will look for further clarity on order momentum and 2027 margin targets.

This article is for informational purposes only and does not constitute investment advice.