ASML, Europe's leading manufacturer of chip-making machines, recorded a surge in orders for its most advanced lithography systems in the fourth quarter. This suggests that semiconductor manufacturers are continuing to expand their capacity for AI chip production, despite recent market uncertainty caused by the Chinese AI start-up DeepSeek.
On Monday, Dutch company ASML temporarily lost its status as Europe's most valuable technology company when the stock market shock surrounding DeepSeek led to billion-dollar losses for Nvidia, Broadcom, and other chip manufacturers. DeepSeek presented a cost-effective method for developing powerful AI models that could potentially question the need for massive investments in chips and computing power – a central business model for U.S. tech giants like OpenAI, Meta, and Elon Musk's xAI.
However, ASML's latest quarterly figures tell a different story. The company reported a significant increase in orders for its "Extreme Ultraviolet Lithography" (EUV) machines—a key technology for manufacturing advanced chips. Net order intake in the fourth quarter amounted to 7.1 billion euros, significantly exceeding analysts' estimates of 4 billion euros. The EUV share alone was 3 billion euros, far exceeding expectations.
The company's revenue rose by 24 percent in the fourth quarter to 9.3 billion euros, while the net profit slightly exceeded forecasts at 2.7 billion euros. Investors reacted positively: ASML shares jumped up by 11 percent in early trading on Wednesday.
The growth in the field of artificial intelligence is the key growth driver for our industry," explained ASML CEO Christophe Fouquet. However, the market is not homogeneous: "Not all customers benefit equally, which presents both opportunities and risks.
For the first quarter, ASML expects sales of between 7.5 and 8 billion euros, exceeding market expectations. However, the company confirmed its previous sales forecast for 2025 of 30 to 35 billion euros.
An important indicator of the continued willingness to invest in the chip industry is Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract manufacturer and ASML's largest customer. TSMC announced it would increase its investments to 38 to 40 billion US dollars this year - an increase of more than 30 percent. The company forecasts annual growth of 45 percent for AI chip sales over the next five years.
Stifel analysts referred to ASML's increased EUV orders as a "positive surprise" and noted that this development is particularly remarkable given the current difficulties of Intel and Samsung in keeping up with TSMC in the high-end chip market.
