ASML has lost it position as Europe’s most-valuable technology company, here’s the new No. 1 – Times of India

ASML Holding NV, the Europe’s most valuable technology company, has lost its position. The chip major has been dethroned by software giant SAP SE following a significant drop in its market capitalization. The Dutch chip-machine maker’s shares plummeted after it issued a disappointing guidance update, citing delays in chip plant construction and lower-than-expected orders.
The company’s market capitalization has decreased by over €60 billion since Tuesday’s announcement, marking one of the largest one-day value losses in European history.This decline has allowed SAP to surpass ASML in terms of market value, a position ASML has held for several years.

What’s powering SAP

SAP has been experiencing strong growth, fueled by increased demand for its cloud-based solutions and AI applications. The company recently announced a restructuring plan to further integrate AI into its software offerings. SAP shares have risen 52% this year as the company benefited from a surge in cloud revenue growth, in part fueled by rising demand for artificial intelligence apps.
Incidentally, this is not the first time that ASML has lost its position to SAP, the last time ASML lagged behind SAP in terms of market capitalization was in the year 2020.

What’s hurting ASML

ASML’s struggles are also attributed to the potential for stricter US export controls on its business in China and the overall weakness in the semiconductor sector. Its customers, including Intel and Samsung Electronics, have been cautious about their spending amid economic uncertainty.
The company’s recent financial results were further impacted by a technical error that led to the premature release of its earnings report. ASML is now scheduled to hold a conference call with investors on Wednesday.
As ASML grapples with these challenges, SAP’s continued success and rising market value solidify its position as a leading European technology company.