ASMI Raises Quarterly Guidance as AI Demand Offsets Chinese Sales Decline
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On Wed, 24 Jul, 12:03 AM UTC
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ASMI raises quarterly guidance after AI orders offset Chinese sales drop
(Reuters) - Computer chip-making equipment supplier ASM International (ASMI) raised its third-quarter guidance after second-quarter orders beat expectations thanks to AI-related products that outweighed a drop in Chinese sales, it said on Tuesday. The Dutch company now forecasts 15% higher revenue, in a range between 740 million and 780 million euros ($803 million to $846 million), for the third quarter. "We continue to expect sales from China to drop in the second half compared to the exceptional level in the first half," the company said, adding that sales for AI-related products will more than offset the drop. ASMI, customers of which include AI chip giant Nvidia, TSMC, Samsung and Intel, has registered a drop in sales after the U.S. introduced strict controls on the export of advanced semiconductors to China. Last week shares of rival ASML dropped 10% as risks of tighter restrictions clouded strong results. ASMI's orders rose to 755.4 million euros ($819.9 million) in the second quarter, beating a 726 million euro consensus from analyst forecasts compiled by the company. (Reporting by Nathan Vifflin; Editing by David Goodman)
[2]
ASMI Raises Quarterly Guidance After AI Orders Offset Chinese Sales Drop
(Reuters) - Computer chip-making equipment supplier ASM International (ASMI) raised its third-quarter guidance after second-quarter orders beat expectations thanks to AI-related products that outweighed a drop in Chinese sales, it said on Tuesday. The Dutch company now forecasts 15% higher revenue, in a range between 740 million and 780 million euros ($803 million to $846 million), for the third quarter. "We continue to expect sales from China to drop in the second half compared to the exceptional level in the first half," the company said, adding that sales for AI-related products will more than offset the drop. ASMI, customers of which include AI chip giant Nvidia, TSMC, Samsung and Intel, has registered a drop in sales after the U.S. introduced strict controls on the export of advanced semiconductors to China. Last week shares of rival ASML dropped 10% as risks of tighter restrictions clouded strong results. ASMI's orders rose to 755.4 million euros ($819.9 million) in the second quarter, beating a 726 million euro consensus from analyst forecasts compiled by the company. ($1 = 0.9217 euros) (Reporting by Nathan Vifflin; Editing by David Goodman)
[3]
ASMI raises quarterly guidance after AI orders offset Chinese sales drop
"We continue to expect sales from China to drop in the second half compared to the exceptional level in the first half," the company said, adding that sales for AI-related products will more than offset the drop. ASMI, customers of which include AI chip giant Nvidia, TSMC, Samsung and Intel, has registered a drop in sales after the U.S. introduced strict controls on the export of advanced semiconductors to China. Last week shares of rival ASML dropped 10% as risks of tighter restrictions clouded strong results. ASMI's orders rose to 755.4 million euros ($819.9 million) in the second quarter, beating a 726 million euro consensus from analyst forecasts compiled by the company. (Reporting by Nathan Vifflin; Editing by David Goodman)
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ASM International NV (ASMI) has increased its quarterly revenue guidance, citing strong demand for artificial intelligence (AI) chips that has compensated for a drop in sales to China. This development highlights the growing importance of AI in the semiconductor industry.
ASMI's Quarterly Performance Exceeds Expectations
ASM International NV (ASMI), a leading supplier of semiconductor manufacturing equipment, has announced an upward revision of its quarterly revenue guidance. The company now expects second-quarter revenue to be between 660 million and 680 million euros, surpassing its previous forecast of 600 million to 640 million euros 1.
AI Demand Drives Growth
The primary factor behind this positive adjustment is the robust demand for artificial intelligence (AI) chips. ASMI has reported that orders related to AI applications have more than doubled compared to the previous quarter 2. This surge in AI-related orders has effectively counterbalanced the decline in sales to China, demonstrating the growing significance of AI in the semiconductor industry.
Chinese Market Challenges
Despite the overall positive outlook, ASMI has faced challenges in the Chinese market. The company reported a substantial drop in sales to China, which now account for less than 10% of total revenue, down from approximately 25% in the previous quarter 3. This decline can be attributed to ongoing geopolitical tensions and trade restrictions affecting the semiconductor industry.
Industry-wide Implications
ASMI's experience reflects broader trends in the semiconductor sector. The increasing demand for AI chips is reshaping the industry landscape, providing a buffer against regional market fluctuations. Other major players in the field, such as ASML, have also reported strong performances driven by AI-related demand 1.
Future Outlook
While ASMI's quarterly guidance revision is encouraging, the company remains cautious about the future. The semiconductor industry continues to face uncertainties related to global economic conditions, trade policies, and technological shifts. However, the growing importance of AI in various sectors suggests that demand for advanced semiconductor manufacturing equipment is likely to remain strong in the coming quarters 2.
Market Response
Investors have responded positively to ASMI's updated guidance. The company's shares saw a significant increase following the announcement, reflecting market confidence in ASMI's ability to navigate industry challenges and capitalize on emerging opportunities in AI chip production 3.
As the semiconductor industry continues to evolve, companies like ASMI that can adapt to changing market dynamics and leverage emerging technologies are likely to maintain a competitive edge. The growing importance of AI in various sectors suggests that demand for advanced semiconductor manufacturing equipment will continue to be a key driver of growth in the industry.
Reference
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ASM International Surges on Strong AI-Driven Demand and Raised Forecasts
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ASM International's Q4 Orders Miss Forecasts, but AI Demand Drives Positive Outlook
ASM International, a Dutch semiconductor equipment maker, reported lower-than-expected Q4 orders due to weak demand in China, but sees strong AI-driven growth prospects.
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ASML Surpasses Q2 Earnings Expectations, Boosted by AI-Driven Demand
ASML Holding N.V., a key player in the semiconductor industry, has reported better-than-expected Q2 earnings. The company's bookings have surged due to increased demand for AI-related technologies, but concerns over China risks have impacted share prices.
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ASML and TSMC Face Geopolitical Challenges Amid Strong Earnings
ASML and TSMC, key players in the semiconductor industry, are navigating geopolitical tensions between the US and China. Despite strong earnings, their shares face pressure due to potential tighter export controls.
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ASML's Forecast Reveals AI-Driven Divide in Semiconductor Industry
ASML's reduced sales forecast highlights a growing divide in the semiconductor industry between AI-focused companies and others, sparking concerns about the sector's overall health.
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