ASML's poor performance dragged down the semiconductor sector, dragged down U.S. tech stocks, and even exposed AI as a bubble that burst?

This is purely overthinking. The truth is:

Previously, nearly half of ASML's business came from China. Due to tense Sino-U.S. relations, it was directly politically targeted, and its subsidiaries had no choice but to comply, inevitably falling short of expectations.

Reports suggest ASML's future business from China may drop to 20%. If the company doesn't develop new KA clients, its future indeed looks bleak.

What about the chip and semiconductor-related industries?

They continue to thrive, but only for U.S. companies, as the U.S. only sanctions competitors and businesses serving competitors.

This reasonably explains why Jensen Huang of NVIDIA previously said the AI business was booming, completely contradicting ASML's earnings report.

Huang didn't lie, and ASML's earnings report isn't wrong—there's no conflict; each stands on its own.$ASML(ASML.US)$NVIDIA(NVDA.US)