ASML (ASML) stock rose 4.3% Wednesday after the Dutch semiconductor equipment company posted better-than-expected fourth quarter earnings and its CEO dismissed concerns that DeepSeek’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 those EUV machines costs nearly $400 million.
ASML sells its machines to chip manufacturers such as TSMC (TSM), which uses those machines to produce chips for Nvidia (NVDA), Apple (AAPL), and other tech heavyweights.
The Dutch firm on Wednesday reported earnings per share of 6.85 euros, ahead of the 6.68 euros expected, and its quarterly revenue of 9.2 billion euros topped the 9 billion euros forecast, according to Bloomberg consensus estimates. The company reported taking orders of more than 7 billion euros worth of its tools in the fourth quarter, double the 3.5 billion euros expected. Half of that value came from orders of its EUV machines for AI chips, the company said in a call with analysts Wednesday.
ASML’s 2025 first quarter sales forecast also surpassed expectations, with its guidance range of 7.5 billion euros to 8 billion euros ahead of the 7.2 billion euros consensus estimate, per Bloomberg.
“Consistent with our view from the last quarter, the growth in artificial intelligence is the key driver for growth in our industry,” CEO Christophe Fouquet said in a statement.
“It has created a shift in the market dynamics that is not benefiting all of our customers equally, which creates both opportunities and risks as reflected in our 2025 revenue range.”
ASML’s results were under more scrutiny than usual after its prior quarterly earnings came in far below expectations and sent its stocks — and those of other chipmakers — tumbling.
Shares have been under pressure in recent weeks amid announcements of more restrictive export controls from the Netherlands and the US, which seek to disrupt China’s access to advanced semiconductors.
While ASML has never been permitted to export EUV lithography machines to China, its sales of other equipment to the region have surged in recent years. ASML’s revenue from China rose to roughly 9 billion euros in 2024 from 6.4 billion euros the previous year, per Bloomberg data.
Fouquet said in the call with analysts that ASML’s expectations for its China business haven’t changed. The company already expected China sales to moderate in 2025 and beyond to represent around 20% of its total revenue. Still, the executive contended that geopolitics present risks that could push sales toward the lower end of its 2025 guidance.
