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 that seemed to rival Western leading models. DeepSeek said it was trained for a fraction of the price and with inferior chips. Experts have questioned the model’s actual total cost.
“The growth in artificial intelligence is the key driver for growth in our industry,” said CEO Christophe Fouquet. “It has created a shift in the market dynamics that isn’t benefiting all of our customers equally, which creates both opportunities and risks as reflected in our 2025 revenue range,” he added.
The chip equipment maker reiterated its outlook for 2025 and sees sales to between EUR30 billion and EUR35 billion.