ASML Holding confirms long-term targets amid AI-fueled chip boom
Nov. 14, 2024 5:33 AM ET
By: Preeti Singh, SA News Editor
 Michael Vi/iStock Editorial via Getty Images
ASML Holding (NASDAQ: ASML) has reaffirmed its long-term targets, buoyed by strong demand for its products and services amid an expected growth in semiconductor end-markets.
The Dutch firm — which makes extreme ultraviolet lithography machines — expects annual revenue between €44B and €60B ($46.23B-$63.04B), with gross margin of ~56% and 60% by 2030. That would imply sales growth of 8% to 14% on average over the coming five years.
The targets remain unchanged from the company's previous long-term guidance issued in 2022. Analysts project the firm to generate revenue of $60.89B by 2030.
“The long-term outlook for the semiconductor industry remains promising, given the role of semiconductors as mission-critical enablers of multiple megatrends across society,” the company said in a statement ahead of its investor meeting.
The emergence of artificial intelligence technology has created a significant opportunity for the semiconductor industry, ASML said, which is likely to fuel global chip sales to over $1T by 2030.
Furthermore, ASML sees an opportunity to increase the number of EUV exposures through the remainder of this decade. As a result, the company expects a double-digit EUV lithography spending CAGR between 2025 and 2030 for both advanced Logic and DRAM (dynamic random access memory).
Separately, the firm confirmed its capital allocation strategy, pledging to grow dividends and share buybacks.
The news follows the company’s disappointing third-quarter bookings that missed estimates and poor sales guidance for next year. ASML revised its net sales forecast for 2025 to €30B-€35B (mid-point of €32.5B), from prior outlook of about €30B-€40B, citing slow recovery in the traditional end markets and reduction in China sales.
Shares of the chip equipment maker were up 3.4% premarket on Thursday. |
