ASML Reports Strong Q4 Earnings, Dismissing AI Chip Demand Concerns
ASML (ASML) shares surged by 5% on Wednesday after the Dutch semiconductor equipment giant exceeded market expectations in its fourth quarter earnings report.
CEO Christophe Fouquet dispelled concerns that DeepSeek's AI breakthrough could harm demand for AI chips. ASML develops and manufactures equipment necessary for producing cutting-edge artificial intelligence chips.
ASML's EUV lithography technology is in high demand, and its machines are used by major chipmakers like TSMC (TSM) to produce chips for tech giants like Nvidia (NVDA) and Apple (AAPL).
The company reported earnings per share (EPS) of €6.85, surpassing the expected €6.68. Quarterly revenue reached €9.2 billion, exceeding estimates of €9 billion.
ASML's 2025 first quarter sales forecast of €7.5 billion to €8.0 billion also exceeded the consensus estimate of €7.2 billion.
"Growth in artificial intelligence is the key driver for growth in our industry," said Fouquet. "It creates opportunities and risks."
ASML's earnings came under scrutiny following previous quarterly results that fell short of expectations.
The stock has faced pressure recently due to stricter export controls from the Netherlands and the US targeting China's access to advanced semiconductors. While ASML cannot export EUV lithography machines to China, its sales to the region have been growing.
However, news of DeepSeek's cost-effective AI model raised concerns about reduced spending on AI infrastructure. Fouquet downplayed these concerns, stating that lower AI costs could lead to increased demand for chips.