Dutch semiconductor leader ASML released its fourth-quarter and full-year 2024 earnings, showcasing resilience despite market uncertainties.
The company reported total net sales of €28.3 billion in 2024, up from €27.6 billion in 2023. The rise stemmed from growing demand for semiconductors, fueled by artificial intelligence (AI) advancements.
Net income fell slightly to €7.6 billion from €7.8 billion in 2023. However, ASML’s stock surged 10.45% on Wednesday morning, reflecting investor confidence in its strong performance.
ASML Sees Surge in Bookings, Projects Growth in 2025
ASML recorded a sharp rise in net bookings, reaching €7.1 billion in the fourth quarter, up from €2.6 billion in the previous quarter. Strong demand from TSMC primarily drove this increase.
Extreme ultraviolet lithography (EUV) bookings contributed €3 billion to the total. ASML remains the sole producer of EUV systems, essential for manufacturing smaller and more powerful microchips.
Despite the fourth-quarter surge, net bookings for 2024 dropped to €18.9 billion, down from €20 billion in 2023. The company expects first-quarter 2025 sales to range between €7.5 billion and €8 billion, with a projected gross margin of 52% to 53%.
For the full year 2025, ASML anticipates total net sales between €30 billion and €35 billion, maintaining a gross margin between 51% and 53%. CEO Christophe Fouquet emphasized AI’s role in shaping semiconductor demand, calling it both an opportunity and a risk for the industry.
DeepSeek’s Rise Raises Concerns, but ASML Remains Optimistic
Investment analysts praised ASML’s performance despite turmoil in the AI sector caused by the emergence of DeepSeek. Ben Barringer of Quilter Cheviot described ASML’s results as “impressive,” exceeding revenue and profit expectations.
ASML projects 15% growth in 2025, despite concerns over declining sales in China. Sales in the region fell from 47% to 27% in the last quarter, but strong demand from South Korea and the US offset this decline.
DeepSeek, a Chinese AI-powered chatbot, has disrupted the AI and semiconductor markets. Since its launch on January 20, it became the most downloaded free app on the US Apple Store, surpassing OpenAI.
DeepSeek claims its AI models match or outperform US competitors, using fewer chips and lower memory. This raised concerns about the competitiveness of US companies like Nvidia, which saw a historic $600 billion market value loss on Monday.
ASML’s Future Remains Uncertain Amid AI Shifts
Analysts remain cautiously optimistic about ASML’s long-term prospects. Russ Mould of AJ Bell highlighted ASML’s resilience, calling its earnings “a relief” amid disruptions from DeepSeek.
However, he warned that the impact of AI developments on semiconductor demand remains uncertain. ASML expects a strong 2025, but DeepSeek’s efficiency could shift the demand profile for 2026 and beyond.
CEO Christophe Fouquet reiterated AI’s central role in semiconductor industry growth. Yet, if generative AI becomes cheaper and simpler, traditional chip demand for devices like smartphones and computers may decline further.
ASML’s results have eased immediate concerns, but the company faces a shifting landscape in the AI-driven semiconductor market.