ASML, supplier of the world's most advanced semiconductor manufacturing equipment, on Wednesday beat analyst expectations for the fourth quarter and guided above views for the current period. ASML stock rose on the news.
The Veldhoven, Netherlands, company earned the equivalent of $7.14 a share on sales of $9.66 billion in the fourth quarter. Analysts polled by FactSet had expected earnings of $7.04 a share on sales of $9.54 billion. In the year-earlier period, ASML earned $5.68 a share on sales of $7.89 billion, FactSet said. ASML reports financial results in euros.
Quarterly net bookings were 7.1 billion euros vs. the consensus of 3.5 billion. ASML's extreme ultraviolet (EUV) lithography equipment accounted for 42% of its Q4 bookings.
For the first quarter, ASML predicted sales of 7.75 billion euros ($8.07 billion), based on the midpoint of its guidance. Analysts were modeling $7.59 billion.
The company reiterated its 2025 revenue outlook of 30 billion to 35 billion euros, vs. 28.3 billion in 2024.
"Consistent with our view from the last quarter, the growth in artificial intelligence is the key driver for growth in our industry," Chief Executive Christophe Fouquet said in a news release. "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 Stock Advances On Q4 Report
On the stock market today, ASML stock popped 4.3% to close at 712.65. That pushed shares back to their 50-day moving average line, but the chip giant is still in a downtrend after peaking in July.
Bernstein analyst Sara Russo reiterated her outperform rating on ASML stock with a price target of 887.
"While overall a solid set of results, and that strong bookings number should give investors some reassurance on 2025, we believe there is still a lot to play out in AI demand as DeepSeek impact is better understood," Russo said in a client note. "Longer term we remain bullish on the opportunity for ASML, but caution may prevail until we understand the more near-term implications."
DeepSeek's AI model, built with inferior processors vs. U.S. systems, is making cloud computing service providers rethink their AI infrastructure buildout plans.
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