3Q25 bookings +138% YoY.
ASML Logs Strong Orders Amid AI Spending Frenzy
Story by Mauro Orru • 1h
ASML Holding posted better-than-expected orders of its chip-making equipment for the third quarter as demand for sophisticated semiconductors to power artificial intelligence shows no sign of abating.
The Dutch group reported orders of 5.40 billion euros ($6.27 billion), up from 2.63 billion euros a year earlier and above analysts’ forecast of nearly 5.36 billion euros, according to consensus estimates by Visible Alpha.
The company, which sells chip-making tools to the likes of Intel and Samsung Electronics, booked 3.60 billion euros in orders for its extreme ultraviolet lithography machines, high-end systems that enable semiconductor producers to print the most intricate layers on chips. Analysts had forecast 2.22 billion euros in EUV orders.
“We have seen continued positive momentum around investments in AI, and have also seen this extending to more customers,” Chief Executive Christophe Fouquet said.
ASML shares in Amsterdam gained more than 3% on Wednesday. The company is Europe’s largest by market value. Shares are up nearly 30% so far this year, lifted in recent weeks by a string of partnership announcements from major tech companies.
Nvidia and Intel agreed to jointly develop data-center and personal-computing products. Samsung Electronics and OpenAI reached an initial agreement to establish AI infrastructure, while the ChatGPT maker also struck a multibillion-dollar deal with Advanced Micro Devices to collaborate on AI data centers.
ASML investors have welcomed these partnerships amid expectations that companies will need to purchase more semiconductor-making tools to produce the sophisticated chips needed to power AI.
Meanwhile, a trade deal between the European Union and the U.S. that set a 15% tariff ceiling for semiconductor exports brought much-needed stability to transatlantic trade---ASML ZERO---. ASML spooked markets ahead of the deal in July, when it said it couldn’t guarantee growth next year because of tariff-related uncertainty.
Fouquet said Wednesday that sales next year shouldn’t be below the 2025 figure. Demand for EUV machines is expected to increase, though appetite for less advanced deep ultraviolet lithography systems that ASML is allowed to ship to China should decline, he said. ASML will provide clearer 2026 guidance in January.
The company remains exposed to the volatile relationship between the U.S. and China, a key market that last year accounted for about 36% of its sales, according to ASML’s annual report.
President Trump said last week that he would impose a 100% additional tariff on China as well as new export controls on critical software products after Beijing placed restrictions on the export of rare-earth minerals.
Fouquet said he expects sales in China to decline significantly next year compared to 2024 and 2025. The executive said in July that ASML’s exposure to the country would decrease to over 25% of sales this year, still a sizable chunk of its top line when considering that the company’s most advanced machines are subject to export controls---Boatloads of ArFi---.
The group confirmed its guidance for 2025, projecting sales growth of around 15% on year to roughly 32.50 billion euros and a gross margin of about 52%.
ASML reported sales of 7.52 billion euros for the quarter, up from 7.47 billion euros a year earlier. The figure is below analysts’ forecast but in line with company guidance.
Net profit grew to nearly 2.13 billion euros from 2.08 billion euros a year earlier, beating market expectations. Gross profit—a closely watched metric for companies operating in the semiconductor industry—came in at 3.88 billion euros, generating a 51.6% margin that beat consensus and touched the higher end of company guidance.
For the current quarter, the company expects sales between 9.2 billion euros and 9.8 billion euros, with a gross margin between 51% and 53%.
PS
Rosey picture painted on 1/2 the story.
EUV/ArFi more than AI.
Laser prices ONLY soar from here...making better chips cheaper.
:-) |
