Shares of ASML (ASML) declined early Tuesday after reports indicated the White House is considering stricter restrictions on the Dutch chipmaker’s operations in China. In Europe, ASML’s stock fell over 2% at the start of trading amid renewed focus on tariffs and trade. According to Bloomberg, President Donald Trump is seeking to tighten chip export controls on China, originally implemented by the previous administration to curb the country’s artificial intelligence capabilities.
Dutch officials reportedly met with U.S. counterparts to discuss ASML’s chipmaking operations, with talks focusing on restricting engineers from maintaining semiconductor equipment in China. Last month, Dutch Prime Minister Dick Schoof anticipated increased pressure on ASML’s export controls under Trump. Similarly, Japan’s Tokyo Electron Ltd (TOELF) saw its shares decline after U.S. officials reviewed its operations.
Nvidia (NVDA), which is set to report earnings this week, was also mentioned in the Bloomberg report, with the White House reportedly considering tougher restrictions on its sales to China. The aim is to align rules for companies like ASML and Tokyo Electron with existing U.S. curbs on Lam Research (LRCX), KLA (KLAC), and Applied Materials (AMAT).
Additionally, officials are examining a three-tier export approach that categorizes nations into three groups based on their access to U.S. technology. This follows Trump’s recent memorandum directing the Committee on Foreign Investment in the United States to restrict Chinese investments in strategic sectors, citing national security concerns.
Despite these developments, Wall Street maintains a Moderate Buy consensus rating on ASML stock, with an average price target of $915.31, implying over 24% upside potential.
— news from TipRanks