Analysis

ASML projects immunity amid the corona crisis

Paul van Gerven
Leestijd: 3 minuten

The corona pandemic has prompted hiccups in the supply chain, as well as operational difficulties, but so far ASML has managed to keep things going. Customers keep ordering enthusiastically as well, so the company remains cautiously optimistic despite the uncertainty ahead.

Looking at ASML’s stock price, you wouldn’t think a global pandemic is casting dark shadows over the world economy. After a brief nosedive mid-March, the company’s shares have recovered to pre-corona levels. Even dropping formal financial guidance for the remainder of the year didn’t scare off investors. All this is unusual because the semiconductor industry is historically the first to get hit whenever economic prospects sink.

Reassuring words from CEO Peter Wennink probably helped. “We’re not planning for an Armageddon scenario, where the entire world economy crumbles into an abyss, we’re not planning that. I don’t think it’s got to happen,” Wennink said while discussing first-quarter results with financial analysts.

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