ASML orders rise as chip rout tests AI trade

Global chip stocks sold off on 16 July, with the Nasdaq Composite down 1.5% while major Asian names also fell. SK Hynix dropped more than 11% in Seoul and Samsung shed another 7%, even as companies central to AI infrastructure continue reporting strong demand and earnings.

The pressure is framed as a valuation correction rather than a collapse in demand. Samsung reported second-quarter operating profit up more than 1,800% year on year, Taiwan Semiconductor beat and raised its outlook, and ASML lifted its 2026 sales forecast for the second time this year on AI chip demand, yet investors still marked down shares.

The shift reflects growing doubt over whether the hundreds of billions in AI capital spending by hyperscalers will generate returns, alongside a hawkish Federal Reserve under Kevin Warsh and Brent crude back above $84 on Middle East tension. For Europe, ASML is the key signal: its lithography machines sit at a chokepoint in advanced chip production, but the region owns relatively little of the upside beyond that asset while importing much of the volatility.