What Happened?
Shares of semiconductor materials supplier Entegris (NASDAQ:ENTG) fell 3.5% in the morning session after a cautious outlook from semiconductor equipment giant ASML sparked a broad sell-off across the sector, hitting chipmakers and equipment suppliers alike.
The negative sentiment was triggered after the Dutch firm, whose complex machines are essential for producing advanced chips, warned it could no longer guarantee growth in 2026. ASML's management cited "increasing uncertainty driven by macro-economic and geopolitical developments," including the potential for new U.S. tariffs. As an industry bellwether, a company whose performance is seen as an indicator of the entire sector's health, ASML's comments are a key signal of future capital spending. The warning sent a chill through the market, as concerns grow that trade tensions could disrupt the highly globalized semiconductor supply chain and slow down investment from chip manufacturers.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Entegris? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Entegris’s shares are extremely volatile and have had 32 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock dropped 3.7% on the news that an analyst at KeyBanc lowered their price target on the stock. KeyBanc analyst Aleksey Yefremov reduced the price target on shares of the semiconductor materials supplier to $112 from $117, representing a 4.3% decrease. While the firm maintained its "Overweight" rating, indicating a continued favorable outlook, the lowered price target reflects an updated assessment of the company's financial outlook amid current market conditions. Entegris provides advanced materials and process solutions crucial for the manufacturing of semiconductors and other high-tech products. The adjustment from Wall Street may be prompting some investors to reconsider the stock's near-term valuation, even with a generally positive long-term view from the analyst.
Entegris is down 11.1% since the beginning of the year, and at $86.47 per share, it is trading 41% below its 52-week high of $146.48 from July 2024. Investors who bought $1,000 worth of Entegris’s shares 5 years ago would now be looking at an investment worth $1,498.
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