The ASML share increases by earnings beaten as CEO says Deepseek will drive AI -chip demand higher

On By Littum

ASML (ASML) share rose 4.3% on Wednesday after Dutch Semiconductor Equipment Company released better than expected earnings in the fourth quarter, and its CEO rejected concern that Deepse’s latest breakthrough would hurt demand for AI chips.

ASML invented the technology Required to make the world’s most advanced artificial intelligence chips and is the only manufacturer of the complex machines that use its EUV lithography technology. The latest version of these EUV machines costs nearly $ 400 million.

ASML sells its machines to chip manufacturers such as TSMC (TSM), which uses these machines to manufacture chips for NVIDIA (NVDA), Apple (AAPL) and other tech -tongue weights.

The Dutch company on Wednesday reported earnings per year. A share of 6.85 euros, in front of the expected 6.68 euros, and its quarterly turnover of 9.2 billion euros topped the 9 billion euros forecasts, according to Bloomberg consensus estimates. The company reported to take orders of more than € 7 billion worth of its tools in the fourth quarter, twice as much as expected 3.5 billion euros. Half of this value came from orders from its EUV machines to AI chips, the company said in a call with analysts on Wednesday.

ASML’s sales forecast in 2025 first quarter also exceeded expectations with its guidance area of ​​7.5 billion euro to € 8 billion In front of 7.2 billion euros consensus estimate per Bloomberg.

“In accordance with our last quarter view, the growth of artificial intelligence is the most important driving force for growth in our industry,” CEO Christophe Fouquet said in a statement.

“It has created a shift in market dynamics that does not benefit from all our customers equally, which creates both opportunities and risks, as reflected in our revenue interval in 2025.”

ASML’s results were under more control than usual, after its previous quarterly earnings came far below expectations and sent its shares – and those from other chipmakers – tumbling.

Shares have been under pressure in recent weeks in the midst of messages of more restrictive export control from the Netherlands and the United States, seeking to disrupt China’s access to advanced semiconductors.

While ASML has never been allowed to export EUV lithography to China, its sales of other equipment to the region have increased in recent years. ASML’s revenue from China increased to approx. 9 billion euros in 2024 from 6.4 billion euros the year before, per year. Bloomberg -Data.

Fouquet said in the call with analysts that ASML’s expectations of its China business have not changed. The company already expected that China sales would moderate in 2025 and on to represent about 20% of its total revenue. Still claiming the executive that geopolitics presented risks that could push sales towards the lower end of its 2025 guidance.