ASML Shares Drop 8.8% as Semiconductor Sell-Off Hits AI Stocks

ASML Holding ADR shares fell 8.8% in morning trading following the Democratic Party's sweeping victory in the U.S. midterm elections, triggering a broad sell-off in semiconductor and AI-related stocks. Investors rapidly reassessed AI infrastructure investment prospects amid concerns over potential regulatory tightening or moratoriums on new data center construction. ASML manufactures extreme ultraviolet lithography systems essential for AI processor production, making its order backlog directly vulnerable to threats against data center construction pace. The stock is trading below key moving averages in a technically bearish position, while U.S.-China export regulation friction remains a background risk given China accounts for approximately 20% of the company's 2026 revenue. The Philadelphia Semiconductor Index plunged about 11% on the day, with the Nasdaq falling 4.9% and S&P 500 dropping 3.2%, erasing post-election gains. ASML's Amsterdam-listed shares also declined significantly, indicating sector-wide selling pressure. The stock trades at $1,365, well below its 52-week high of $1,999.96 but above its low of $946.11, as investors weigh risks of slowing AI infrastructure construction weighing on equipment orders beyond 2027.