ASML, the Dutch chipmaking equipment leader, outperformed expectations in its latest quarterly results thanks to soaring global demand for AI technology. CEO Christophe Fouquet said the company continues to see “positive momentum” from AI investments, which are driving growth in both advanced logic chips — key for smartphones and AI datacenters — and advanced memory chips.
The company reported net bookings of €5.40 billion, slightly above forecasts, and a net profit of €2.12 billion, matching analyst expectations. ASML shares have surged 37% since September, with an additional 3.2% rise following the results.
However, ASML warned that sales to China — which accounted for nearly half of its revenue in 2024 — are set to fall sharply next year. CFO Roger Dassen described the decline as a “normalization” rather than a reaction to trade tensions. The company remains unable to sell its most advanced lithography machines to Chinese firms under U.S.-led export controls, although it said recent Chinese restrictions on rare earth exports will not impact operations in the short term.
ASML projects sales to remain flat at around €32.5 billion in 2026 before returning to growth in 2027. JPMorgan analysts believe market confidence will strengthen as investors refocus on ASML’s longer-term growth potential amid the AI chip boom.
