ASML, the world's largest semiconductor equipment maker, reported its second-quarter (Q2) results, surpassing expectations with net sales of €6.24 billion and a net profit of €1.58 billion. Despite these strong financials, the company's shares fell sharply, closing down 11% due to concerns over potential new US export restrictions on China. Sales to China accounted for 41% of ASML's total revenue in the first half of 2024, a significant increase from 15% in 2023, as Chinese companies rushed to purchase equipment ahead of anticipated tighter controls. The broader semiconductor sector also experienced declines, with companies like Nvidia, AMD, and TSMC seeing their stocks drop in response to ASML's soft guidance and geopolitical tensions.