A wave of skepticism is beginning to temper the prolonged enthusiasm for artificial intelligence that has buoyed the technology sector. Semiconductor equipment giant ASML is now caught in a broader market correction, driven by growing doubts over the sustainability of massive capital expenditures in AI infrastructure. The stock’s current weakness stems directly from this industry-wide reassessment, rather than any operational missteps by the company itself.
Market Sentiment Shifts Focus
The downward pressure on ASML’s share price reflects a significant sector rotation currently underway. Market participants are critically re-evaluating the long-term viability of the enormous investments being funneled into AI-related infrastructure. This recalibration of risk is impacting the entire European tech landscape, pulling down major players like ASML in the process. Financial analysts interpret the sell-off as a response to mounting concerns that expectations for near-term returns on AI investments may be overly optimistic.
Should investors sell immediately? Or is it worth buying Asml?
Technical Levels and Corporate Action
This uncertainty is clearly visible on the chart. Closing at €913.00 on Tuesday, the shares have moved notably lower from their 52-week high of just above €976, recorded in early December. From a technical analysis perspective, the situation is becoming critical: the price is approaching its 50-day moving average, situated around €903. A sustained break below this level could be viewed by algorithmic and technical traders as a signal for further selling.
Interestingly, while investors are taking profits or de-risking their portfolios, the company itself is acting as a buyer in the market. Confirmed transactions between December 8th and 12th indicate ASML is continuing with its share repurchase program. This divergence between the company’s strategic confidence and the nervous market mood highlights the present volatility. In the near term, the direction of the stock is likely to be dictated more by the general sentiment in the semiconductor sector than by ASML’s own solid fundamentals. The key question for traders is whether the psychologically significant €900 level can be defended in the coming trading sessions.
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