Due to lower performance expectations, the share price of lithography machine giant ASML (ASML.US) plummeted, and its status as Europe's most valuable technology company was replaced by software company SAP (SAP.US). ASML shocked investors on Tuesday by lowering its guidance, citing delays in chip factory construction, wiping more than 60 billion euros ($65.3 billion) off the company's market value. The company also received only about half of the orders analysts expected in the third quarter.

The 16% drop was ASML's biggest drop in 26 years and one of the biggest single-day declines for a company in Europe, along with Nokia and Vodafone Group when the dot-com bubble burst more than 20 years ago.


At the same time, benefiting from the substantial growth in cloud computing revenue,SAP's stock price is up 52% ​​this year. The growth is driven in part by growing demand for artificial intelligence applications. last timeASML fell behind SAP in 2020 in terms of market capitalization.

SAP announced a restructuring plan this year as part of its efforts to integrate artificial intelligence into SAP software to help enterprise customers become more efficient. The company will report third-quarter results next Monday.

As of press time, SAP's share price rose 1.1% to 212.15 euros, with a market value of 261 billion euros.

ASML's shares have fallen by more than a third since reaching a record level in July on concerns that the U.S. may impose more restrictions on its operations in China and on overall weakness in the semiconductor industry. The index fell 5% on Wednesday.

Customer Intel is cutting spending through restructuring that includes delaying plans for factories in Germany and Poland, and memory chipmaker customers such as Samsung Electronics are also watching their spending closely.


Chip industry downturn leads to sharp drop in orders from ASML

ASML's poor performance was compounded by the company's mistake in releasing its financial results a day early.ASML said in a statement that the early release of the financial report was "due to a technical error." The company will host a conference call with investors in Amsterdam at 3 p.m. Wednesday.