ASML, a leading supplier of semiconductor equipment, reported first-quarter earnings of $1.3 billion (€1.22 billion), falling short of expectations with net bookings totaling €3.61 billion against an estimated €5.1 billion. The company's net sales reached €5.29 billion, slightly below the forecast of €5.39 billion, marking a 21.6% decline year-over-year. Despite these misses, ASML's gross margin improved to 51%, exceeding expectations of 48.5%. The company anticipates stronger performance in the second half of 2024, projecting net sales between €5.7 billion and €6.2 billion for Q2, though this is below the expected €6.46 billion. ASML's performance reflects a cautious outlook from chipmakers, influenced by a downturn in demand for advanced machines and ongoing geopolitical tensions, notably U.S.-led restrictions on exports to China.