Dutch semiconductor giant ASML reported a significant jump in fourth-quarter net bookings, suggesting strong demand for its advanced chipmaking tools. The company’s shares surged more than 11% before paring gains to trade at 9.6% higher.
ASML reported net sales of 9.26 billion euros, beating the 9.07 billion euros expected by analysts. Net profit came in at 2.69 billion euros, also exceeding expectations. The company’s net bookings, a key indicator of order demand, rose 169% to 7.09 billion euros, exceeding the 3.99 billion euros expected by analysts.
Despite concerns over the impact of low-cost AI models, such as DeepSeek’s R1 reasoning model, on demand for ASML’s high-precision extreme ultraviolet (EUV) machines, CEO Christophe Fouquet expressed optimism. He believes that the development of low-cost AI models will drive more demand for semiconductors, not less.
ASML’s CFO, Roger Dassen, also highlighted the company’s strong order backlog, which stood at approximately 36 billion euros at the end of 2024. The company maintained its 2025 full-year sales outlook, expecting total revenue to range between 30 billion and 35 billion euros.
Some analysts praised the earnings report, saying it offered reassurance to the market following concerns over DeepSeek. Others noted that the results vindicated the view that ASML is not overvalued or full of puff. ASML is Morningstar’s top AI pick in Europe, and its shares were trading at 646.60 euros per share on Tuesday.