ASML, the largest supplier of equipment to computer chip makers, reported weaker than expected first-quarter new bookings today, although sales to China held up despite US-led restrictions on what it can export.
Shares in Europe's biggest tech firm, which had risen 34% this year, were down 6% in early trade.
ASML kept its full-year financial forecasts unchanged, with sales seen flat from last year's €27.6 billion, although it is gearing up for strong growth in 2025.
Net income in the first quarter was €1.22 billion, down from €2.05 billion in the fourth quarter of 2023. Sales were €5.29 billion, down from €7.24 billion.
New bookings were €3.6 billion, well below the €5.4 billion foreseen by analysts polled by Reuters.
"Although disappointing we would not read too much into it as order intake is notoriously lumpy," said ING analyst Marc Hesselink.
Sales of ASML's lithography systems to customers in China made up a record 49% of the total in the first quarter, or around €2 billion, the company said in an investor presentation published alongside the earnings.
"Our outlook for the full year 2024 is unchanged, with the second half of the year expected to be stronger than the first half, in line with the industry's continued recovery from the downturn," outgoing CEO Peter Wennink said in a statement, describing 2024 as a "transition year".
Wennink, who is retiring, will be replaced by Christophe Fouquet at the company's annual meeting on April 24.
ASML dominates the market for lithography systems, machines that can cost hundreds millions of euros each and use light beams to help create microscopic circuitry.
It will benefit from new chip plants planned with support from governments in Taiwan, South Korea, Japan, China and the US.
According to forecasts by industry group SEMI, China is adding the most chipmaking capacity in 2024, followed by Taiwan and South Korea.
US-led export curbs aimed at undermining China's ability to make its own advanced chips have led Chinese chipmakers to focus on building older generations of chips, using equipment that does not fall under export control policies.
