A U.S. congressional committee accused ASML of promoting China's chip industry. The stock fell

Shares of Dutch chip equipment maker ASML fell after U.S. lawmakers accused the company of promoting the development of the Chinese microchip industry. This raised fears of new export restrictions on its products, Bloomberg writes.

Quotes of ASML fell at the trading in Amsterdam, and at the moment they showed a decline of 7.1% - the largest since July. After that, the shares partially recovered the losses, and at the time of publication of this text traded in the minus by 3.5%. The company's shares in New York lost about 1.7% at the opening.

ASML declined to respond to the agency's request for comment.

ASML and other semiconductor equipment manufacturers, including Tokyo Electron, Applied Materials, KLA and Lam Research, "have made large sums of money by selling equipment to Chinese state-owned companies and military-related firms," according to a statement by a special committee in the U.S. Congress. The document also notes that China's success in microchip production "poses a threat" to US national security.

The committee called on the Donald Trump administration to "radically expand nationwide bans and license requirements" on exports of such products to China. The committee itself has no authority to impose such restrictions, and the U.S. Department of Commerce is not obliged to follow its recommendations, Bloomberg notes.

Ahead of ASML's quarterly earnings release this week, scheduled for October 15, HSBC raised its target price on the company's shares to €1018, maintaining a "buy" advice. Its valuation implies a 16% upside potential for the stock. "Recent positive news supports our view that ASML will be able to grow revenue by 6% in 2026. Our revenue and operating profit forecasts for this period are 3-5% above consensus estimates," the bank said in a note.

At the same time, JPMorgan raised its target on the company's shares to €1000 and confirmed its recommendation to buy. Its price target implies a 14.3% increase in the share price.

Of the 40 analysts tracking ASML stock, 26 recommend buying it, 11 recommend holding, and only one recommends selling.

ASML is the world's only manufacturer of advanced lithography machines needed to produce high-tech microchips used in electric cars, military equipment and other industries. Because of U.S.-led export restrictions, ASML has never been able to ship its most advanced machines to China, Bloomberg recalls. The Chinese market is the second largest for the Dutch manufacturer, accounting for 27% of revenue in the second quarter.

This article was AI-translated and verified by a human editor