ASML, TSMC Report This Week: What Traders Are Watching After A 6-Day Chip Stock Slide

(MENAFN- AsiaNet News)

• Results from ASML and TSMC would offer key signals for future chip demand.
• ASML previously raised its 2026 revenue outlook in July.
• Retail sentiment toward ASML strengthened, while TSMC sentiment has cooled as both stocks face pressure from the broader chip selloff.

ASML Holding NV (ASML) and Taiwan Semiconductor Manufacturing Co. (TSM) are poised to offer crucial clues about the health of the AI trade with their quarterly reports this week as a broad selloff in chip stocks raises the stakes.

Semiconductor stocks have been pressured; the iShares Semiconductor ETF (SOXX) fell for a sixth straight session on Tuesday, as fresh investor doubts about whether massive spending on AI infrastructure will generate sufficient returns, along with rising bond yields and financing costs, add to concerns. 

Recent comments from Broadcom CEO Hock Tan about possible capital constraints in the AI buildout have added to the unease, while reports of Chinese memory-maker CXMT narrowing the technology gap have pressured memory stocks. 

Investors To Peruse AI Outlook From ASML, TSMC 

ASML's results matter because demand for advanced chipmaking equipment can signal future chip sales and the health of the semiconductor industry. Analysts expect third-quarter revenue to rise 23% to $13.12 billion and adjusted profit to increase 39% to $12.05 per share, per Koyfin, with investors focused on equipment orders, demand trends, and the company's outlook.  

ASML previously raised its 2026 revenue outlook in July, reflecting continued demand for its lithography systems, and traders will look for indications that this momentum can continue.

The Dutch company will issue its report in U.S. premarket hours on Wednesday.

TSMC's report will provide another key test of the AI trade. The company issued September sales figures last week, reporting third-quarter revenue of NT 1.49 trillion ($46.7 billion), up 51% year over year.

As such, investors will now look at the bottom line and future guidance to assess whether demand for AI chips continues to support growth. TSMC will report during U.S. premarket hours on Thursday.

Chip Rout, Retail View On ASML, TSMC

Both stocks have come under pressure alongside the broader semiconductor sector, with U.S.-listed shares of ASML falling in six of the last seven sessions and TSM declining in five out of six.

Retail sentiment toward ASML has shifted to 'extremely bullish' from 'bullish' as of late Tuesday, while sentiment for TSMC cooled to 'neutral' from 'bullish,' according to Stocktwits data.

Traders have highlighted the importance of ASML's report in particular.“$ASML whole chip market lifeline is in your hands. Don't fart tomorrow please,” one trader wrote.

Another said the results could serve as“the canaries” for how major AI and technology companies perform when they report, adding that a poor showing from either company could signal trouble ahead.

A third wrote:“$ASML heading into earnings with a 4.1% drop over the last five days. No clear options flow to lean on so it's a pure binary play... Watch for surprises on orders or guidance that could swing this hard."

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