Nvidia Supplier ASML Loses Over $130 Billion In Market Cap Amid China Export Curbs, Trump Tariff Uncertainty

Dutch semiconductor giant, ASML Holding N.V. ASML has lost over $130 billion in market value within a year, largely due to export restrictions to China and uncertainty surrounding U.S. tariffs.

What Happened: The company’s market capitalization, as per data from S&P Capital IQ, has tumbled from $429.5 billion at its peak in July to a little below $297 billion. The semiconductor industry has faced increased volatility amid stricter U.S. chip export restrictions to China and the threat of new tariffs by President Donald Trump. Nvidia NVDA supplier, ASML, a key player in the global semiconductor supply chain, has been particularly affected, reported CNBC.

ASML, the exclusive manufacturer of extreme ultraviolet (EUV) lithography machines, has not been able to deliver its most advanced equipment to China, further impacting its sales.

“All the equipment manufacturers in the space have come down because they are concentrating all the fears around … the U.S. restrictions to China,” commented Stephane Houri, ODDO BHF‘s head of equity research.

Despite the challenges, analysts remain optimistic about ASML’s prospects, setting a target price above 779 euros—suggesting a potential 17% gain from Tuesday’s closing level.

Why It Matters: ASML has been making significant investments in developing high-powered chip tools, such as the high numerical aperture (High NA) machines, for over a decade. The company’s high NA machines have been a key focus, with a price tag of over $400 million each. These machines are vital for the production of the most advanced chips, and ASML has been unable to sell them to China, which has further impacted the company’s potential sales.

Earlier in April, ASML’s shares took a hit after the company’s CFO, Roger Dassen, highlighted the potential impact of tariffs on the company’s performance in 2025 during an analyst call. In January, ASML CEO Christophe Fouquet told CNBC that he anticipates the company’s share of business in China will be lower in 2025 compared to 2023 and 2024 amid export restrictions.

Despite these challenges, ASML remains positive about its growth opportunities in 2025 and 2026, with companies like Samsung and Intel INTC investing in next-generation chipmaking tools.

On a year-to-date basis, ASML stock climbed 8.05% to close at $756.79 on Tuesday. Over a year, it plunged 23.7%