ASML Shares Face Geopolitical Storm Amid Espionage Allegations

The Dutch semiconductor equipment manufacturer ASML finds itself at the center of a geopolitical firestorm, creating investor anxiety. A new exposé has triggered serious espionage allegations, which the company strongly denies, shifting focus away from its pioneering lithography technology. As corporate leadership threatens legal action, market participants are questioning whether the delicate political balancing act between the US and China could negatively impact share performance.

Recent transaction data from ASML's ongoing share buyback program reveals heightened market nervousness. Selling pressure accelerated dramatically toward the end of last week. While the company repurchased its own shares at an average price exceeding €900 on Thursday, the weighted purchase price collapsed by nearly €70 to approximately €838 on Friday, November 21.

This sharp decline highlights current uncertainty. Although continuous repurchases provide technical support for the share price, the drop below the 50-day moving average indicates that bullish investors have temporarily retreated.

Should investors sell immediately? Or is it worth buying ASML?

Explosive Claims from New Publication

The source of market concern stems from the book "The Most Important Machine in the World." Former Bloomberg journalists allege that ASML offered to serve as the "eyes and ears" for the US government within China. According to these claims, the purported arrangement aimed to prevent stricter export controls after previous violations of informal agreements allegedly occurred.

Corporate headquarters issued a forceful response. ASML rejected the portrayals as "highly inaccurate" and damaging to its reputation. The company stated it had previously warned the authors and is now considering legal measures. Management categorically denied ever proposing to spy on customers for American authorities. For investors, this conflict significantly elevates the risk profile of ASML shares by further intensifying tensions surrounding the critical China business segment.

The company's vehement denial may help calm market waters, though shares are likely to remain sensitive to geopolitical developments as long as espionage suspicions dominate headlines.