ASML's deep forecast cuts that sparked a global tech stock selloff signal overcapacity at chip factories rather than a slowdown in global semiconductor demand, analysts said. While the weaker 2025 sales outlook from the chip equipment maker on Tuesday raised fears of faltering global semiconductor demand,

ASML's downgraded 2025 sales forecast has sparked a major sell-off in chip stocks, causing concerns about potential faltering global chip demand. However,

ASML posted orders below analysts’ expectations as chip makers held back spending on key production equipment in anticipation of a rebound in semiconductor demand.