Dutch semiconductor giant ASML released its fourth-quarter and full-year 2024 earnings, showing resilience despite market turbulence.
The company’s total net sales for 2024 reached €28.3 billion, up from €27.6 billion in 2023. This growth was largely driven by advancements in artificial intelligence, which boosted semiconductor demand.
However, net income declined slightly, falling to €7.6 billion in 2024 from €7.8 billion in the previous year. Despite this, ASML’s stock surged 10.45% on Wednesday morning.
Strong Bookings Drive Optimism for 2025
Net bookings rose sharply in the fourth quarter of 2024, reaching €7.1 billion, up from €2.6 billion in the previous quarter. This increase came mainly from strong demand at TSMC.
Extreme ultraviolet lithography (EUV) bookings accounted for €3 billion. ASML remains the only company producing and selling EUV systems, which are essential for manufacturing advanced microchips.
Despite strong quarterly bookings, full-year 2024 bookings fell to €18.9 billion, down from €20 billion in 2023. ASML expects first-quarter 2025 sales to range between €7.5 billion and €8 billion, with a gross margin of 52% to 53%. For the full year, revenue projections stand between €30 billion and €35 billion, with a gross margin estimate of 51% to 53%.
CEO Christophe Fouquet emphasized AI’s role in driving semiconductor demand but warned of risks from shifting market dynamics. “Growth in artificial intelligence remains the key driver for our industry,” he stated.
ASML Reassures Investors Amid DeepSeek Disruptions
Analysts welcomed ASML’s results as a stabilizing force after market turmoil linked to DeepSeek, a Chinese AI chatbot that debuted on January 20.
Technology analyst Ben Barringer praised ASML’s performance, noting that revenue exceeded expectations by 2.5%, with profits surpassing forecasts by 8%. “Guidance was also strong, coming in 9% ahead of projections,” he said.
ASML forecasts 15% growth in 2025, reinforcing confidence despite concerns about China’s semiconductor landscape. Quarterly sales in China fell from 47% to 27%, but strong demand from South Korea and the US offset the decline.
DeepSeek’s rise has unsettled global tech markets. The chatbot, more cost-effective than competitors like OpenAI, triggered Nvidia’s worst single-day loss in US history, wiping out nearly $600 billion in market value.
Future Outlook: Cautious Optimism Amid AI Disruptions
ASML’s results provided relief to investors, yet analysts remain watchful of DeepSeek’s long-term impact.
Investment director Russ Mould noted ASML’s position as a key player in AI-driven semiconductor manufacturing but highlighted potential challenges. “While ASML remains positive for 2025, it will take time to gauge how DeepSeek’s rise might alter demand beyond 2026,” he said.
CEO Fouquet reaffirmed AI’s importance in driving industry growth. However, if generative AI development becomes less costly and complex, semiconductor demand could suffer.
Despite challenges in the smartphone and PC chip market, ASML’s robust order book suggests continued strength in the near term. The industry now watches closely to see how AI evolution shapes semiconductor demand in the coming years.
