Lates News

ASML's (ASML.O) capacity expansion guidance has become a key focus on its earnings release day. As the semiconductor sector's rally weakens, investors are eager for signs of confidence, making the importance of this capacity guidance even more prominent. After a strong rally in the first half of the year, semiconductor stocks have recently cooled. Following another decline in U.S. chip stocks, shares of South Korean chipmakers fell to two-month lows on Tuesday. Over the next 48 hours, investors will closely watch the performance of ASML and its key customer TSMC, hoping the two companies can boost market confidence. Ben Barringer, head of technology research at Quilter Cheviot, said: "The market's biggest focus right now is capacity. Without visibility into order data and with limited backlog information, it is crucial for the company to raise its capacity targets." ASML previously stopped disclosing quarterly order data, citing large order volatility, and instead began providing guidance on the number of machines expected to be produced this year and in the coming years. Investors are increasingly relying on this metric to gauge the strength of demand and ASML's ability to expand supply.