ASML

ASML Holding (ASML.AS) said Wednesday that net income dropped, while net sales for full-year 2024 rose year over year. Net income for the 12 months ended Dec. 31, 2024, was 7.57 billion euros, compared with 7.84 billion euros earlier. EPS moved to 19.24 euros from 19.89 euros. The Dutch semiconductor equipment developer’s net sales were 28.26 billion euros, compared with 27.56 billion euros a year ago. Analysts polled by FactSet were expecting 28.06 billion euros in sales, 7.48 billion euros in net income, and 19.1 euros in EPS. Meanwhile, the board proposed a third interim dividend of 1.52 euros and a final dividend of 1.84 euros per share. The third interim dividend is payable on Feb. 19. This will take the full-year dividend to 6.40 euros per share, up from 6.10 euros in the previous year.

ASML Holding reported a strong set of earnings and orders for the fourth quarter that should inject some relief into the market after the DeepSeek fallout earlier in the week, Citi analysts write in a note to clients. The Dutch semiconductor-equipment maker ended the year with a strong fourth-quarter order intake of 7.09 billion euros, the analysts say, noting the figure is well ahead of even the most bullish expectations. Analysts had forecast 3.99 billion euros in orders, according to consensus estimates by Visible Alpha.

ASML Holding’s sales and gross margin forecasts for the current quarter are stronger than expected, Citi analysts write in a note to investors. The Dutch semiconductor-equipment maker expects sales between 7.5 billion euros and 8 billion euros in the first quarter, with a gross margin between 52% and 53%. Analysts note that the mid-point of sales guidance at 7.75 billion euros is above consensus of 7.11 billion euros. The margin mid-point is also about 140 basis points above consensus of 51.1%, they say.

Competition from Chinese artificial-intelligence company DeepSeek is positive for the industry, ASML Holding CEO Christophe Fouquet says in an earnings call. DeepSeek developed AI models that it said nearly matched U.S. rivals despite using inferior chips. Fouquet says any technology that can bring down AI costs is good news since it could create opportunities for the semiconductor industry. Lowering AI costs could usher in more volume in terms of chip sales and, ultimately, better demand for ASML’s semiconductor-making machinery. ASML shares trade 8.9% higher at 703.90 euros.

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

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

ASML Holding’s orders should be investors’ main focus when the Dutch semiconductor-equipment maker reports fourth-quarter results on Jan. 29, Citi analysts write in a research note. They estimate 4 billion euros in orders, roughly in line with consensus of 4.2 billion euros. The analysts say expectations remain subdued since the wider semiconductor industry is navigating a downturn due to sluggish demand for chips from some end-markets. They expect ASML to report a gross margin of 49.5%, in line with company guidance. ASML shares trade 0.4% lower at 709.80 euros.

ASML Holding is expected to report higher orders starting in the first quarter compared to recent months, thanks to large clients like Samsung Electronics and Taiwan Semiconductor Manufacturing Co., Jefferies analysts write in a research note. The analysts expect the Dutch semiconductor-equipment maker to post orders of 3.6 billion euros for the fourth quarter of 2024. However, they say these should climb to a range of 5 billion euros to 6 billion euros from the first quarter of 2025. The analysts cited an increase in orders from TSMC as well as the prospect that Samsung might soon be able to supply its high bandwidth memory chips to Nvidia as potential boosts for ASML. ASML shares trade 0.5% lower at 720.80 euros.

ASML Holding faces a few months without a positive share price catalyst as newsflow in the near term is unlikely to improve for the Dutch semiconductor-equipment maker, Stifel’s Juergen Wagner writes in a research note. ASML shed more than $60 billion in market value this week after the company warned the recovery for some areas of the industry could extend well into the next year.Wagner says near-term visibility is more limited at the moment, likely prompting a change in investor sentiment more toward shorter-term newsflow. ASML shares trade 0.6% lower at 630.00 euros.

ASML Holding’s cut to its expectations for next year on weak order intake means the company’s trajectory from 2025 into 2026 and beyond is now key for its shares, Citi analysts say in a research note. The Dutch company, which supplies semiconductor-manufacturing machinery to chip makers, expects between 30 billion and 35 billion euros in sales next year, below a previous forecast of up to 40 billion euros. The company had reiterated as recently as September that the low end of its 2025 sales guidance was conservative despite negative newsflow over the summer, including cuts to spending plans by key customer Intel, Citi says. “Estimates had been declining for 2025, including our own, but consensus at 36 billion euros is now high,” the analysts say.