Bank of America sees ASML as resilient amid China concerns

ASML, the Dutch company that makes the machines that make the world’s most advanced chips, just watched its stock drop roughly 6% in a single session. The culprit: news that a Chinese firm can now mass-produce DUV lithography systems, the kind of tools ASML has long dominated. Bank of America’s response to the panic? Calm down. BofA has reiterated its Buy rating on ASML, arguing that investors are reading too much into trade press coverage about Chinese competitors and not enough into the company’s actual business fundamentals. The stock closed around $1,655 per share on July 27, 2026, and then slid an additional 4% or so in preliminary trading the next day. The China question, translated China has historically accounted for approximately 33% of ASML’s revenue. But thanks to export controls that block the sale of ASML’s most advanced EUV (extreme ultraviolet) machines to Chinese buyers, that share is projected to fall to around 20% by 2026. The revenue hit from losing Chinese business is already baked into forward-looking models. The latest scare centers on immersion DUV (deep ultraviolet) lithography, which is older and less sophisticated than EUV technology. A Chinese company rep...