Impact of ASML's Booking Decline on Semiconductor Stocks

The significant drop in ASML's bookings by over 50% has sent shockwaves throughout the semiconductor industry, leading to a drastic decline in shares of related companies. ASML's weak sales forecast for fiscal 2025 led to a 16% plunge in its stock, marking its worst single-day drop in four years. This downturn isn't isolated, as it negatively impacted major players like KLA, Applied Materials, and NVIDIA, each experiencing substantial declines. The warning signals raise questions about oversupply and sustainability within the semiconductor market, suggesting a potential peak in the red-hot chip trade.