ASML Beats Estimates with Record Bookings, Amid AI Chip Market Uncertainty
Dutch semiconductor equipment giant ASML reported better-than-expected fourth-quarter bookings of €7.088 billion ($7.39 billion), driven by strong demand for its advanced tools.
Analysts had anticipated bookings of €3.99 billion, according to Visible Alpha. The significant order inflow signals healthy prospects for ASML and other chip equipment makers, despite concerns raised by Chinese AI firm DeepSeek's recent launch.
"Artificial intelligence is a key growth driver for our industry," said ASML CEO Christophe Fouquet.
DeepSeek's AI model, which requires less computing power than rivals, has cast doubt on the future demand for specialized AI chips. Tech giants such as Google, Microsoft, Meta, and Amazon may reconsider their planned investments in the sector.
ASML's primary customer, TSMC, manufactures chips for Nvidia and software companies.
The company reported fourth-quarter net income of €2.7 billion on sales of €9.3 billion, a notable increase from the third quarter of 2024 (€2.1 billion net income, €7.5 billion sales).
"ASML has exceeded expectations across all metrics," said Degroof Petercam analyst Michael Roeg. However, he emphasized that the impact of DeepSeek's model on market trends remains uncertain.
"This question will be addressed by large data center operators and Nvidia in their upcoming conference calls," Roeg added.