ASML’s stock price falls after erratic earnings release, taking Nvidia and other AI chipmakers down with it

Chip stocks are falling. But why?

Shares of Dutch ASML Holding’s ( ASML ) fell more than 17% on Tuesday after the automation equipment maker missed third-quarter estimates and forecast lower sales for next year.

Earnings results were accidentally published a day earlier than expected. ASML said the early publication was due to a technical error that published part of its Q3 results on its website.

The Netherlands chipmaker lowered its 2025 sales forecasts to between 30 billion to 35 billion euros ($32.7 billion to $38.1 billion) at the lower end of its guidance.

“While strong progress and high potential in AI continue, some segments of the market are taking longer to recover,” said CEO Christophe Fouquet in the company’s earnings release. “Now it seems the recovery is slower than previously expected. This is expected to continue through 2025, leading to customer vigilance.”

The company is facing difficulties ahead in China, which is expected to account for about 20% of the company’s revenue next year, due to Dutch and American export restrictions on shipments to the country, according to CNBC.

The earnings results for the chip company, which is a key supplier to the broader semiconductor industry, caused a sell-off in other stocks, with the rest of the market falling asleep, causing the Dow to close 300 points.

Shares of current Wall Street darling Nvidia’s (NVDA) are down about 5% after closing at a recent high. It closed up 4.5% on the day.

Taiwan Semiconductor Manufacturing Company (TSMC), which produces about 90% of the world’s most advanced semiconductor chips, also fell more than 2.6%.

Also near the market: Intel (INTC) fell 3.3%, Broadcom (AVGO) fell 3.47%, and Advanced Micro Devices, Inc. (AMD) was down 5.22%.