Chip Equipment Maker ASML Sees Surge in Demand Amid AI Boom
The artificial intelligence (AI) revolution is driving a surge in demand for advanced computer chip equipment, with top manufacturer ASML reporting a staggering 7.09 billion euros ($7.39 billion) in fourth-quarter bookings. This figure far exceeds expectations, providing a much-needed boost to investors in the chip industry.
A Boom in AI Chip Demand
The large influx of orders is a clear indication that AI chip prospects remain healthy, despite recent concerns sparked by the release of DeepSeek’s model, which uses less computing power than its rivals. ASML’s shares responded positively, rising 11% to 722 euros in early trade.
Industry Growth Driven by AI
According to ASML CEO Christophe Fouquet, “The growth in artificial intelligence is the key driver for growth in our industry.” This growth is evident in the company’s financials, with fourth-quarter net income reaching 2.7 billion euros on sales of 9.3 billion euros. These numbers beat expectations “from bookings to bottom line,” said Michael Roeg, an analyst for Degroof Petercam.
ASML’s Biggest Customer: TSMC
ASML’s largest customer, Taiwan Semiconductor Manufacturing Co (TSMC), manufactures most chips designed by Nvidia and other software firms. TSMC, along with memory chip maker SK Hynix, is boosting capital expenditures to take advantage of the AI boom. In contrast, Intel and Samsung have struggled to keep pace.
Regional Sales Breakdown
The United States was ASML’s largest market in the fourth quarter, accounting for 28% of sales, slightly ahead of China. This reflects TSMC’s expansion in Arizona and Intel’s purchase of ASML’s new “High NA” EUV tools, which cost around $400 million apiece.
Forecast and Outlook
ASML has reiterated its 2025 sales forecast of 30-35 billion euros, representing growth of 7-25% from 28.3 billion in 2024. While the company remains optimistic about its prospects, analysts caution that it’s too early to determine whether DeepSeek’s advent marks a major change in market trends. That question will be answered by the large data center operators and Nvidia in their upcoming conference calls.
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