China and tariffs have wiped off $130 billion from critical chip firm ASML since peak value
An icon of ASML is displayed on a smartphone, with an ASML chip visible in the background.
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More than $130 billion of value has been wiped off of ASML in under a year amid restrictions on exports to China and U.S. tariff uncertainty
Shares of ASML, which is seen as a critical cog in the semiconductor supply chain, hit a record high of over 1,000 euros a piece in July last year for a market capitalization of $429.5 billion, according to data from S&P Capital IQ. That fell to just under $297 billion at the Tuesday close price.
Semiconductor stocks have been volatile since last year due to tightening U.S. chip export restrictions to China and U.S. President Donald Trump’s threat of tariffs on the sector since he took office. ASML and other European semiconductor firms have felt the heat.
“All the equipment manufacturers in the space have come down because they are concentrating all the fears around … the U.S. restrictions to China,” Stephane Houri, head of equity research at ODDO BHF, told CNBC’s “Europe Early Edition” on Wednesday.
Houri also said tariff discussions and debate over whether companies are over-investing in artificial intelligence, bringing up questions over whether “demand is not at the level that many people expect.”
ASML is one of the most important companies in the semiconductor supply chain. It designs tools, known as extreme ultraviolet lithography (EUV) machines, that are purchased by manufacturers like TSMC and are required to make the world’s most advanced chips.
The company recently started shipping the next generation of these machines, known as high numerical aperture, or High NA.
ASML is widely seen as the only company in the world that can produce these EUV machines, giving it a wide moat.
But ASML has never been able to ship its most advanced machines to China, which has cut off potential sales for the Dutch firm. ASML CEO Christophe Fouquet told CNBC in January that, in 2025, he expects the “ratio of our business in China to be lower than what it has been” in 2023 and 2024.
ASML is not alone in facing challenges from tariffs and China. Chip stocks across the world have felt pressure from the uncertainty in global markets linked to China and tariffs.
ASML upside?
A trade and tariffs deal between the U.S. and Europe could remove some uncertainty for investors.
“If there is an agreement in the end with President Trump and … Europe and many other countries, they probably will benefit from the relief in the market, and notably in the sector,” Houri added.
Despite the external pressures weighing on ASML, analysts are still relatively bullish on the stock. ASML has a target price of just over 779 euros, according to a average of analyst calls collated by LSEG. That implies around 17% upside from the Tuesday closing price.
This month, Wells Fargo published a note to clients after a meeting with ASML management. The analysts at the investment bank said ASML “remains positive on growth opportunities” in 2025 and 2026, highlighting companies such as Samsung and Intel who are spending on next-generation chipmaking tools.
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CyberArk’s stock jumps on report Palo Alto Networks in talks to buy company for over $20 billion
Nikesh Arora, CEO of Palo Alto Networks, looks on during the closing bell at the Nasdaq Market in New York City, U.S., March 25, 2025.
Jeenah Moon | Reuters
CyberArk shares soared as much as 18% on Tuesday after The Wall Street Journal reported that cybersecurity provider Palo Alto Networks has held discussions to buy the identity management software maker for over $20 billion.
Cloud security is becoming an increasingly critical piece of the enterprise tech stack, especially as rapid advancements in artificial intelligence bring with them a whole new set of threats, and as ransomware attacks become more commonplace.
Founded in 2005, Palo Alto Networks has emerged in recent years as a consolidator in the cybersecurity industry and has grown into the biggest player in the space by market cap, with a valuation of over $130 billion. CEO Nikesh Arora, who was appointed to the job in 2018, has been on a spending spree, snapping up Protect AI in a deal that closed in July, and in 2023 buying Talon Cyber Security, Dig Security and Zycada Networks.
But CyberArk would represent by far Arora’s biggest bet yet. The Israeli company, which went public in 2014, provides technology that helps companies streamline the process of logging on to applications for employees.
CyberArk faces competition from Microsoft, Okta and IBM‘s HashiCorp. Another rival, SailPoint, returned to the public markets in February.
With Tuesday’s rally, CyberArk shares climbed to a record, surpassing their prior all-time high reached in February. The stock is up 29% this year, pushing the company’s market cap to almost $21 billion, after jumping 52% in 2024. Palo Alto shares, meanwhile, slid 3.5% on the report and are now up about 9% for the year.
Representatives from Palo Alto Networks and CyberArk declined to comment.
During the first quarter, CyberArk generated around $11.5 million in net income on around $318 million in revenue, which was up 43% from a year earlier.
It’s been an active stretch for big deals in the cyber market. Google said in March that it was spending $32 billion on Wiz, its largest acquisition on record by far, and a purchase intended to bolster its cloud business with greater AI security technology.
Networking giant Cisco also made its biggest deal ever in the security space, buying Splunk in 2023 for $28 billion. Splunk’s technology helps businesses monitor and analyze their data to minimize the risk of hacks and resolve technical issues faster.
— CNBC’s Ari Levy contributed to this report
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