Top computer chip equipment maker ASML reported fourth-quarter bookings of 7.09 billion euros ($7.39 billion) on Wednesday that far exceeded expectations, as a boom in AI drove demand for the company's most advanced equipment.
The large order influx may reassure investors in ASML and other chip stocks that AI chip prospects remain healthy, despite a selloff this week sparked by the release of DeepSeek's model, which uses less computing power than those of rivals.
ASML shares rose 11% to 722 euros in early trade.
Analysts had predicted bookings at 3.99 billion euros, according to polling by Visible Alpha, an increase from 2.63 billion euros in the third quarter of 2024.
"The growth in artificial intelligence is the key driver for growth in our industry," ASML CEO Christophe Fouquet said in a statement.
DeepSeek's launch has called into question whether tech giants, including Google, Microsoft, Meta and Amazon, will need to follow through on plans for huge investments in AI chips. ASML's biggest customer, TSMC, manufactures most chips designed by Nvidia and the software firms.
ASML reported fourth quarter net income of 2.7 billion euros on sales of 9.3 billion euros.
The numbers beat expectations "from bookings to bottom line," said Michael Roeg, an analyst for Degroof Petercam. He cautioned that ASML is "too far from the fire" to really be able to answer whether DeepSeek's advent marks a major change in market trends.
"That is for the large data centre operators to answer in their conference calls, and for Nvidia to answer in their conference call," he said.
ASML repeated a 2025 sales forecast of 30-35 billion euros, which represents growth of 7-25% from 28.3 billion in 2024. While TSMC and memory chip maker SK Hynix are boosting capex to take advantage of the AI boom, Intel and Samsung have struggled.
The United States was ASML's largest market in the fourth quarter with 28% of sales, slightly ahead of China. That reflects TSMC's expansion in Arizona and Intel's purchase of the first two of ASML's new "High NA" EUV tools, which cost around $400 million apiece.
ASML has forecast China sales will recede to 20% of the company's total after a major build-out in 2024 despite restrictions imposed on chip equipment exports by the U.S. and Dutch governments on national security grounds.
($1 = 0.9579 euros)
(Reporting by Toby Sterling; Editing by Christopher Cushing, Gerry Doyle and Louise Heavens)
Copyright (2025) Thomson Reuters.
This article was written by Nathan Vifflin and Toby Sterling from Reuters and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.