Global chip stocks continued to slump after Dutch semiconductor-equipment maker ASML Holding warned the recovery for some areas of the industry would be slower than expected, raising fears among investors of a prolonged downturn in demand.

ASML Holding, the Dutch microchip-equipment maker, saw its stock slide after saying the market recovery for semiconductors will take longer than expected.

After a volatile summer, ASML Holding NV investors are hoping that its earnings report will underline the chip equipment maker’s strong credentials as an artificial intelligence trade with further to run.

A day after a profit warning that rocked the stock market, executives at ASML Holding said the slower-than-expected recovery in the microchip market will have the sharpest impact on sales to China while having a relatively minor impact on sales of its most advanced systems elsewhere in the world.

ASML said it expects net sales for 2025 to come in between 30 billion euros and 35 billion euros ($32.7 billion and $38.1 billion), at the lower half of the range it had previously provided. CFO Roger Dassen warned that China is expected to account for around 20% of the company's total revenue for the next year.

Investors in the semiconductor sector are facing renewed uncertainty following a sobering outlook from ASML Holding NV, one of the world’s leading chip equipment manufacturers. The Dutch company’s revised forecast triggered a sharp decline in global chip stocks,