Why Is ASML Stock Falling Today?

ASML Holding NV (ASML) stock fell over 7% today after a report revealed that a Chinese state-backed firm has begun producing immersion DUV lithography machines, critical tools for semiconductor manufacturing. While China's DUV program is currently in its early stages and lags behind ASML's output and performance, the increased domestic production could gradually impact ASML's market position in China over time. Despite this development, ASML faces little near-term risk due to strong global AI-driven chip demand, with Chinese customers even paying a premium for ASML's less-advanced DUV systems.