ASML, the maker of advanced microchip-making equipment, on Wednesday reported better-than-expected earnings after foundries upgraded their machines as its bookings surged ahead of estimates.
Critical chip firm ASML posts fourth-quarter sales and profit beat
ASML , the biggest supplier of computer chip-making equipment, on Wednesday reported much better than expected fourth-quarter bookings of 7.08 billion euros ($7.39 billion), on strong demand for its most advanced tools.
ASML Holding N.V. is expected to report strong Q4 earnings on January 29, 2025, driven by high demand for AI chips and robust industry growth. Taiwan Semiconductor Manufacturing Company's record sales growth and Foxconn's impressive earnings support a bullish outlook for ASML Holding. ASML Holding's consistent profit beat history and potential for margin growth make it a compelling investment despite its current valuation.
ASML Holding (ASML) sold off close to 20% around its last earnings cycle. Kevin Green considers it a leading factor behind its low earnings bar, though that doesn't mean investors should discredit the company.
My prior “Sell” view on ASML Holding N.V. has been playing out as the stock has not only underperformed the S&P 500 but fallen on a total shareholder return basis as well. Heading into Q4 FY24 earnings, I am retaining a bearish view, as more capex expectation downgrades among key foundries suggests a weak demand outlook for ASML. Based on historical beat vs. miss surprise data, I think ASML may surprise positively on results but disappoint in some guidance metrics.
Investors will seek reassurance that ASML's AI-dependent growth outlook for 2025 is secure despite a selloff sparked by China's DeepSeek, as the biggest supplier of equipment used to make computer chips ASML reports earnings on Wednesday.
After Monday's fears over artificial-intelligence microchips fueled by the rise of low-cost Chinese AI chatbot DeepSeek, the Dutch company's results due Wednesday morning may have even more sway.
ASML may face certain geopolitical risks as export controls tighten for semiconductor manufacturing equipment. With the Dutch government tightening restrictions, ASML may face deeper Chinese headwinds. Management lowered FY25 revenue forecast to €30-35b and gross margin guidance to 51-53% in q3'24, citing trade restrictions and cautious customer investments. Despite headwinds, AI-driven demand and a robust installed base support long-term growth, positioning ASML shares favorably for the current market outlook.
ASML Holding's fourth-quarter 2024 results are expected to reflect strength in EUV and DRAM amid macro headwinds.
There aren't too many investors better versed in technology than Phillipe Laffont. With a $6.5 billion net worth, according to Forbes, Laffont cut his teeth at the well-known hedge fund Tiger Management, the predecessor of Tiger Global Management, which focuses heavily on tech investing.
A slew of artificial intelligence stocks, including chip maker Nvidia (NVDA), are tumbling in premarket trading Monday after Chinese startup DeepSeek released a cutting-edge AI model that runs on less-advanced chips and at a lower cost than U.S. rivals like OpenAI.