ASML (ASML) Actions increased by 4.3% on Wednesday after the Dutch semiconductor equipment company posted better than expected results in the fourth quarter and its CEO rejected the concerns that the last breakthrough of Deepseek would harm ia chips.
ASML invented technology Required to make the most advanced artificial intelligence fleas in the world and is the only manufacturer of complex machines that use its EUV lithography technology. The latest version of these EUV machines costs nearly $ 400 million.
ASML sells its machines to flea manufacturers such as TSMC (TSM), which uses these machines to produce chips for nvidia (Nvda), Apple (Aapl), and other technological heavy goods vehicles.
On Wednesday, the Dutch company declared a profit per share of 6.85 euros, ahead of the 6.68 euros expected, and its quarterly revenues of 9.2 billion euros exceeded the forecasts of 9 billion euros, According to estimates by Bloomberg Consensus. The company said it had taken orders of more than 7 billion euros from its tools in the fourth quarter, double the 3.5 billion euros expected. Half of this value came from the orders of its EUV machines for the AI fleas, the company said with analysts on Wednesday.
ASML’s first quarter sales forecasts of the first quarter in 2025 also exceeded expectations, with Its range of advice of 7.5 billion euros at 8 billion euros Before the estimate of the consensus of 7.2 billion euros, according to Bloomberg.
“In accordance with our point of view since the last quarter, the growth of artificial intelligence is the main engine of the growth of our industry,” said CEO Christophe Fouquet in a statement.
“It has created a change in market dynamics which does not benefit all our customers as well, which creates both opportunities and risks as reflected in our range of 2025 income.”
ASML results were more examined than usual after its Previous quarterly benefits have come well below expectations And sent its stocks – and those of other flea manufacturers – falling.
Actions have been under pressure in recent weeks in the midst of more restrictive export controls in the Netherlands and the United States, which are looking to disrupt China access to advanced semiconductors.
Although ASML has never been authorized to export EUV lithography machines to China, its sales of other equipment in the region have increased in recent years. ASML revenues from China reached around 9 billion euros in 2024, compared to 6.4 billion euros the previous year, according to Bloomberg data.
Fouquet said in the call with analysts that ASML’s expectations for his Chinese activity had not changed. The company already expected that China sales were moderate in 2025 and beyond to represent around 20% of its total income. However, the executive argued that geopolitics has risks that could push sales to the lower end of its directives in 2025.