ASML and TSMC Results Shine Light on Chip Crisis: How Investors Will React

As investor unease grows over a selloff in AI-inflated tech stocks, this week's results from Taiwan Semiconductor Manufacturing Co. (TSMC) and ASML Holding NV carry even greater significance than usual.

■TSMC's quarterly earnings rose by 15%, while ASML's orders fell by 30% for 2024.

■ASML is waiting for new machine orders in 2025, as TSMC's new factories will come online in 2026.

■The eurodollar remained steady at 1.1200, as the direct impact of the chip crisis on the European economy is still unclear.

■The ECB will continue its rate path as inflation remains at 3.5%. These results suggest that the semiconductor sector may see 10% growth between 2025-2027, driven by ASML's new machine orders and TSMC's 2026 factories. The ECB's rate decision will reflect the chip crisis's impact on the European economy. Investors should monitor TSMC and ASML stocks closely.

The performance of ASML and TSMC will reflect global chip demand, with the NASDAQ-100 expected to move between 5-7% in the coming months. The ECB's rate decision will shape the narrative around the chip crisis's broader implications.