ASML Holding ( NASDAQ:ASML ) just delivered the numbers Wall Street has been waiting for.
Dutch semiconductor chip machine maker ASML recorded a record net profit of 9.6 billion euros ($11.5 billion) in 2025 on sales of 32.7 billion euros fueled by AI-driven demand, the company reported Wednesday as it also announced plans to slash its workforce by about 1,700, about 4% of its workforce.
Rarely have two earnings reports so neatly aligned, as microchip equipment maker ASML Holding reported surprisingly strong orders growth as memory-chip producer SK Hynix said it would make a “considerable increase” in capital expenditure.
The company logged record quarterly orders of its semiconductor-making equipment and said it expects healthy sales growth this year.
Analysts expect memory chipmakers to increase capacity to mitigate a shortage in the component which could benefit ASML. Bookings, one of the most closely-watched metrics from investors, came in at 13.2 billion euros ($15.8 billion), ahead of estimates.
ASML has become Europe's most valuable company thanks to its dominance in making lithography systems, huge "chip printing" machines that cost $250 million each and are indispensable to firms driving the AI boom.
ASML Holding outlines how a shift toward advanced EUV systems and High-NA technology can lift gross margins to as high as 60% by 2030.
ASML Holding N.V. ASML is slated to report fourth-quarter 2025 results on Jan. 28, before market open.
ASML Holding trades at a premium to its 5-year average multiples after a 40%+ rally, with forward P/E still above 30. Despite valuation concerns, I maintain a bullish outlook, downgraded from Strong Buy, due to ASML's unique positioning amid aggressive investments in CapEx from its main customers. Geopolitical risks, especially US-EU tensions, could pressure ASML's share price despite likely supply chain exemptions.
ASML (ASML) concluded the recent trading session at $1, signifying a +2.57% move from its prior day's close.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
ASML is fully valued at current prices, yet I maintain a "Buy" rating due to anticipated AI-driven demand beyond 2027. Recent wafer fabrication equipment spending and TSM's CapEx increases signal robust, prolonged demand, supporting ASML's pricing power and future growth. Q4 2025 consensus expects $11.1 billion in revenue (+15.1%) and $8.73 EPS (+22.5%), with 2026-2027 growth hinging on management guidance.