Technology

ASML Offers Upbeat First-Quarter Revenue Outlook as Fourth-Quarter Results Top Views

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ASML’s (ASML) US-listed shares spiked early Wednesday as the Dutch chip equipment maker issued an upbeat first-quarter revenue outlook after recording better-than-expected results in the preceding three-month period. The company anticipates sales to be in a range of 7.5 billion euros ($7.81 billion) to 8 billion euros ($8.33 billion) for the ongoing quarter, compared with the current consensus on FactSet for 7.21 billion euros. Gross margin is pegged at 52% to 53%. ASML’s stock on the Nasdaq spiked nearly 7% in premarket activity. “Consistent with our view from the last quarter, the growth in artificial intelligence is the key driver for growth in our industry,” Chief Executive Christophe Fouquet said in a statement. “It has created a shift in the market dynamics that is not benefiting all of our customers equally, which creates both opportunities and risks as reflected in our 2025 revenue range.” For the full year 2025, ASML […]

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ASML Stock Erases DeepSeek Selloff After Earnings Beat. AI Is Still Driving Growth.

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ASML stock soared after posting quarterly earnings that beat analysts’ expectations early Wednesday, erasing losses after the market went into a tailspin about DeepSeek’s low-cost AI model earlier this week. Amsterdam-listed shares of the Dutch semiconductor equipment maker jumped 7.9% to EUR698.20 ($726). The company’s American depositary receipts, or ADRs, were up 5.5% to $721.00 in early trading. ASML reported fourth-quarter earnings of EUR6.85 a share on sales of EUR9.3 billion, beating expectations for earnings of EUR6.72 on sales of EUR9.1 billion, according to FactSet. Net booking for the quarter came in at EUR7.1 billion, while analysts had expected only EUR5.7 billion. “ASML’s fourth-quarter results should provide an island of calm amidst a sea of panic for investors in the semiconductor industry,” Hargreaves Lansdown analyst Derren Nathan said. Earlier this week, U.S. tech investors got a wake-up call as news spread about the Chinese firm DeepSeek’s AI model and chatbot

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Lam Research Stock Jumps After Earnings. AI Investors Just Got Another Reassurance.

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Lam Research stock was rising after the semiconductor equipment maker signaled to jittery tech investors that all is still well with demand for advanced AI chips. Late Wednesday, the company posted adjusted earnings of 91 cents a share on revenue of $4.38 billion for the quarter, beating expectations for earnings of 88 cents a share on revenue of $4.32 billion, according to FactSet. It sees revenue for the March quarter coming in around $4.65 billion, plus or minus $300 million, also above analysts’ consensus call. Shares rose 5.2% to $79.09 in premarket trading Thursday. Futures tracking the Nasdaq were up 0.4%. Lam CEO Tim Archer said the demand for higher chip performance is a good sign for the company, as it would create a greater need for its equipment. Earlier this week, investors got a wake up call in the form of a low-cost AI model out of China. It

Lam Research Stock Jumps After Earnings. AI Investors Just Got Another Reassurance. Read Post »

Nvidia Stock Rises. Why the Chip Maker Is Getting a Much-Needed Boost.

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Nvidia stock looked set to climb again on Thursday, having racked up gains the previous session thanks to Google parent Alphabet’s artificial intelligence spending plans. Shares of the chip maker rose 1.8% to $127.10 in premarket trading. Futures tracking the benchmark S&P 500 were up 0.2%. Nvidia stock climbed 5.2% on Wednesday after Alphabet pledged to make $75 billion in capital expenditures this year. That came after Microsoft and Meta Platforms also said they intend to raise their capex as they rush to build AI infrastructure. It was a much-needed boost. Nvidia stock has started 2025 in the red amid fears that the rapid rise of Chinese startup DeepSeek’s cheaper AI model could lead to big technology companies rethinking their capital expenditure plans. Western rivals have accelerated the launch of new AI models in response to DeepSeek’s advances. Google said Wednesday it would offer a new “Flash-Lite” version of its

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Salesforce’s Agentforce a ‘Good’ Catalyst for Company in 2025, Oppenheimer Says

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Salesforce’s (CRM) Agentforce artificial intelligence platform is a “good” catalyst for the company this year even though initial deployments are small, Oppenheimer said in a Thursday note where the firm discussed its conversation with a Salesforce global system integrator. “The generative AI messaging and Agentforce cycles resonate with customers with greater investor appreciation for Salesforce’s AI positioning following,” Oppenheimer said. The firm said that some of the other catalysts for the company this year are topline reacceleration and continued margin growth. “While recognizing that sub-10% top-line growth and negative [foreign exchange] fluctuations are headwinds to higher estimates and multiples, we like the risk/reward profile,” the firm said. Oppenheimer maintained the company’s outperform rating and $415 price target.

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Skyworks Hits Roadblock With Apple Content Loss, Analysts See Tough Road For Recovery

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Skyworks Solutions, Inc. (NASDAQ:SWKS) shares are trading lower on Thursday. Yesterday, the company reported quarterly financial results and announced a CEO transition. Skyworks expects second-quarter revenue to be between $935 million and $965 million, and adjusted earnings of $1.20 per share. Here are the analysts’ take on the stock: Stifelanalyst Ruben Roy downgraded Skyworks to Hold from Buy, lowering the price forecast to $62 from $105. KeyBanc Capital Marketsanalyst John Vinh reiterated the Sector Weight rating on the stock. Raymond Jamesanalyst Srini Pajjuri maintained the Market Perform rating on the stock. Stifel: Roy noted that the firm had lost content with its largest customer, Apple Inc., due to a dual-sourced socket strategy, with Broadcom Inc. as the second source. A 20%-25% content reduction is expected in the iPhone 17, and recovery isn’t likely until Apple shifts more toward internally sourced modems. As a result, revenue and profitability are expected to be much lower than

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Skyworks’ Stock Sinks as Apple Setback Is a ‘Nightmare Realized’

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Skyworks’ stock could see its worst day on record, with analysts noting that Broadcom seems to have gotten in on the action for a lucrative iPhone socket Due to faulty FactSet data, a previous version of this report included an incorrect historical comparison of the stock’s move. Skyworks Solutions Inc. shares could see their worst performance on record Thursday as investors grapple with changes in the connectivity company’s relationship with Apple Inc. Skyworks (SWKS) makes radio-frequency components, and its management said on the earnings call that the company has been working with its largest customer for 18 years. That customer is widely seen to be Apple (AAPL), though Skyworks didn’t mention the name on its call. But Skyworks noted that for the coming smartphone cycle, the company expects a lower “content position” in the new phones. That’s expected to weigh on revenue beginning in the September quarter, with impacts throughout

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Alphabet Needs to Ship New Products to Prove Incremental Engagement, Morgan Stanley Says

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Alphabet (GOOGL) needs to ship more generative AI/GPU-enabled products to larger groups of users to show it can drive incremental engagement and more durable long-term monetization, Morgan Stanley said in a note to clients Wednesday. “Shipping products and proving that they will indeed provide incremental multi-year revenue and cash flow growth remains the proof point that [Alphabet] needs to show in order to break out of this 16-20X PE multiple on our ~$10.40 of 2026 EPS,” the investment firm said. Morgan Stanley said it cut the company’s 2026 EPS estimate by nearly 4% to $10.36 after its earnings report due to a 1% decrease in revenue and an about 11% increase in D&A. The investment firm cut Alphabet’s price target to $210 from $215, and kept its overweight rating. Shares of Alphabet were down more than 8% in recent trading.

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AMD Shares Drop After CEO Guides Q1 Data Center Revenue Down 7%

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Advanced Micro Devices, Inc. (NASDAQ:AMD) shares are diving Wednesday following its fourth-quarter earnings release on Tuesday. Data center segment revenues and guidance given on the company’s conference call are weighing on investors. What To Know: AMD’s Datacenter fourth-quarter revenue came in below analyst expectations of $4.14 billion, per CNBC, and the company guided for further declines ahead. CFO Jean Hu said on the company’s earnings call that data center revenue is expected to decline by about 7% in the first quarter, in line with the company’s overall revenue. CEO Lisa Su added more color to the Q1 guidance and attributed the anticipated decline to seasonality across business segments. “And the way that breaks out in each of the segments assume that data center would be down just about that average, so the corporate average. We would expect the client business and the embedded business to be down more than that. Just given where seasonality is for

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IBM Story Is Underappreciated, Goldman Sachs Says Stock Can Re-Rate Higher

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Goldman Sachs analyst James Schneider expressed views on International Business Machines Corporation’s (NYSE:IBM) Investor Day, which took place on February 4. The analyst maintained a Buy rating and a $275 price forecast, considering the company remains underappreciated in the TMT sector and offers discovery value, especially for long-only investors. The analyst notes that IBM projects over 5% total revenue growth from 2025 to 2027, including M&A, with pre-tax margin and FCF growth outpacing revenue growth. The analyst notes the stock should continue to rise, as IBM has outlined a credible strategy to sustain accelerated long-term Software revenue growth of around 10%, surpassing their previous expectation of high-single digits for 2025-2027. Moreover, Schneider notes that IBM raised its medium-term Software revenue growth target to 10%, up from mid-single digits, with Red Hat seeing mid-teens growth. The analyst sees a potential upside in IBM’s Software growth and margins, fueled by increasing demand for containerization, OpenShift,

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Arm Beats Earnings. The Stock Is Falling Anyway.

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Arm reported better-than-expected earnings results Wednesday afternoon. It shares fell in after-hours trading. The company reported fiscal third-quarter adjusted earnings per share of 39 cents, compared to Wall Street’s consensus estimate of 34 cents, according to FactSet. Revenue came in at $983 million, which was above analysts’ expectations of $949 million. Arm also guided current-quarter sales to a range of $1.175 billion to $1.275 billion versus the $1.22 billion analysts’ estimate. Arm shares initially fell as much as 7% in late trading following the release. The stock was up 6.8% in Wednesday’s regular trading session. This is breaking news. Read a preview of Arm earnings below and check back for more analysis soon. Investors eager to hear what the DeepSeek moment means for the AI chip industry will be tuning in on Wednesday, when Arm Holdings discloses its quarterly results. Arm makes money by licensing its chip designs to semiconductor

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AMD Faces a Double Threat for 2025

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This article is from the free weekly Barron’s Tech email newsletter. Sign up here to get it delivered directly to your inbox. Lost Year. Hi everyone. Advanced Micro Devices is facing trouble in 2025. Double trouble, in fact. On Tuesday, AMD reported better-than-expected fourth-quarter earnings results and gave a slightly better-than-expected outlook for revenue in its current quarter. Still, the chip stock tumbled as much as 10% on the news. The culprits were some underlying numbers in the company’s data center business, along with weak commentary about its outlook for all-important AI chips. AMD’s December-quarter data center revenue came in at $3.86 billion, which was below the $4.14 billion estimate. The miss suggests the strong growth for AMD’s core x86 franchise, where it has been gaining share from Intel, could be slowing. AMD also faces a rising threat from Arm in the server CPU market. Microsoft, Amazon Web Services, and

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