ASML Projects $1 Trillion Semiconductor Market by 2030, Driven by AI Boom

ASML Believes Global Semiconductor Markets Will Reach $1 Trillion Valuation By 2030, Driven By Huge AI Demand

ASML, the Dutch chip equipment manufacturer, reportedly believes that global semiconductor sales will rise to $1 trillion by 2030, citing the AI hype. The semiconductor industry, out of all the segments associated with the AI frenzy, has capitalized on the trend massively. Modern-day chips hold a crucial role in the development of AI accelerators and servers, which is why companies like NVIDIA have placed massive orders with TSMC and other chip manufacturers. Not just the general industry but ASML believes that the firm is expected to generate around $46 billion in equipment sales by 2030, associating this optimistic figure with the demand generated from the AI sector. We expect that our ability to scale EUV technology into the next decade and extend our versatile holistic lithography portfolio, positions ASML well to contribute to, and leverage the Artificial Intelligence (AI) opportunity, and allows ASML to deliver significant revenue and profitability growth. - President and CEO Christophe Fouquet ASML is the leading chip equipment provider worldwide, aiding firms like TSMC and Samsung Foundry in developing semiconductors that are then integrated into AI hardware by NVIDIA and AMD. It won't be wrong to say that ASML is the powerhouse behind the technology, showing the company's significance in the ongoing time. The Dutch firm's latest High-NA EUV equipment, which is said to be the "holy grail" of the chip markets, is said to cost up to $350 million for just a single unit and is only accessible by a few fabs out there, mainly TSMC, Samsung, and Intel. ASML says that the firm is on track to achieve gross margins of approximately 56% to 60% by 2030; however, ASML has witnessed some recent slacks in its business, especially with the "early release" of its earnings, followed by the limited business with China due to the influence of US sanctions, and with ASML apparently finding trouble in finding a "business ground" between China and the US, this did ultimately translated into weaker earnings, but moving in the future, ASML seems optimistic. The Dutch firm believes that global semiconductor sales could surpass the $1 trillion mark by 2030, which is approximately a 9% YoY growth rate in 2025-2030, which shows that the chip markets have a bullish future, driven by the influx of AI chip demand.

ASML Believes Global Semiconductor Markets Will Reach $1 Trillion Valuation By 2023, Driven By Huge AI Demand

ASML, the Dutch chip equipment manufacturer, reportedly believes that global semiconductor sales will rise to $1 trillion by 2030, citing the AI hype. The semiconductor industry, out of all the segments associated with the AI frenzy, has capitalized on the trend massively. Modern-day chips hold a crucial role in the development of AI accelerators and servers, which is why companies like NVIDIA have placed massive orders with TSMC and other chip manufacturers. Not just the general industry but ASML believes that the firm is expected to generate around $46 billion in equipment sales by 2030, associating this optimistic figure with the demand generated from the AI sector. We expect that our ability to scale EUV technology into the next decade and extend our versatile holistic lithography portfolio, positions ASML well to contribute to, and leverage the Artificial Intelligence (AI) opportunity, and allows ASML to deliver significant revenue and profitability growth. - President and CEO Christophe Fouquet ASML is the leading chip equipment provider worldwide, aiding firms like TSMC and Samsung Foundry in developing semiconductors that are then integrated into AI hardware by NVIDIA and AMD. It won't be wrong to say that ASML is the powerhouse behind the technology, showing the company's significance in the ongoing time. The Dutch firm's latest High-NA EUV equipment, which is said to be the "holy grail" of the chip markets, is said to cost up to $350 million for just a single unit and is only accessible by a few fabs out there, mainly TSMC, Samsung, and Intel. ASML says that the firm is on track to achieve gross margins of approximately 56% to 60% by 2030; however, ASML has witnessed some recent slacks in its business, especially with the "early release" of its earnings, followed by the limited business with China due to the influence of US sanctions, and with ASML apparently finding trouble in finding a "business ground" between China and the US, this did ultimately translated into weaker earnings, but moving in the future, ASML seems optimistic. The Dutch firm believes that global semiconductor sales could surpass the $1 trillion mark by 2030, which is approximately a 9% YoY growth rate in 2025-2030, which shows that the chip markets have a bullish future, driven by the influx of AI chip demand.

ASML Projects Revenue Surge to $63 Billion by 2030, Eyes AI and Chip Market Boom - ASML Holding (NASDAQ:ASML)

The company expects double-digit growth in EUV lithography spending driven by demand in Logic and DRAM nodes. ASML Holding NV ASML shared its strategic roadmap during the 2024 Investor Day, highlighting key growth drivers and market expectations through the decade's end. The semiconductor equipment maker projected significant revenue expansion, with scenarios estimating annual sales of $46.51 billion - $63.43 billion (44 billion euros - 60 billion euros) by 2030, alongside a gross margin target of 56%-60%. CEO Christophe Fouquet sees the company's extended lithography portfolio and scalable EUV (Extreme Ultraviolet) technology as crucial assets in capturing the potential of these emerging opportunities. Also Read: Taiwan Semi Boosts Advanced Chipmaking with Record EUV Expansion, Grabs 56% Global Share ASML expects robust demand from the semiconductor sector, with projected global sales surpassing $1 trillion by 2030. This outlook translates to an annual market growth rate of around 9% from 2025 to 2030. The firm anticipates a double-digit CAGR for EUV lithography spending within the same period, focusing on advanced Logic and DRAM nodes. According to ASML, the integration of AI across industries presents a substantial opportunity for semiconductor firms. The company plans to leverage its EUV capabilities to accommodate the rising need for high-performance chips used in AI applications. The scalability of EUV technology allows for efficient multi-patterning, which ASML expects will drive greater customer adoption through cost-effective manufacturing processes. ASML's CFO, Roger Dassen, highlighted the company's confidence in its financial targets, citing a strong pipeline of product demand and increasing lithography spending. He restated the company's capital allocation strategy, which includes substantial returns to shareholders through dividends and share buybacks. The company is navigating geopolitical tensions between Washington and China as a U.S. ally. ASML CEO Christophe Fouquet acknowledges rising U.S. pressure to restrict chip technology sales to China. Despite this, China remains ASML's top market, primarily for sales of mature chips rather than the advanced AI semiconductors targeted by U.S. export restrictions. ASML dominates the market for specialized lithography machines, essential for companies like Taiwan Semiconductor Manufacturing Co TSM in producing cutting-edge chips used in Apple Inc AAPL smartphones and Nvidia Corp NVDA AI processors. Reports suggest that Taiwan Semiconductor plans to purchase advanced ASML lithography equipment by the end of the year, with each unit priced at $350 million. Price Actions: ASML stock traded higher by 5.09% at $707.67 at the last check on Thursday. Also Read: Mastercard's 2030 Vision: A Future Without Passwords, Card Numbers Photo via ASML This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

ASML CEO says AI boom benefits the company

AMSTERDAM (Reuters) - ASML CEO Christoph Fouquet said on Thursday the ongoing boom in AI computer chips would help ASML by increasing the relative share of advanced logic and memory chips being made, leading to more sales of the company's best tools. At the company's investor day in Veldhoven, Netherlands, Fouquet said the company expected the chip market to grow 9% annually through 2025, passing the $1 trillion mark around 2030. "When it comes to 2030, we are still very, very bullish," he said. AI and related memory chips will grow to make up around 40% of the total, he said. Earlier on Thursday, the company said it expected its own sales to increase by about 8-14% annually through 2030. (Reporting by Toby Sterling; Editing by Mark Potter)

ASML CEO says AI boom benefits the company

ASML CEO Christoph Fouquet said on Thursday the ongoing boom in AI computer chips would help ASML by increasing the relative share of advanced logic and memory chips being made, leading to more sales of the company's best tools. At the company's investor day in Veldhoven, Netherlands, Fouquet said the company expected the chip market to grow 9% annually through 2025, passing the $1 trillion mark around 2030. "When it comes to 2030, we are still very, very bullish," he said. AI and related memory chips will grow to make up around 40% of the total, he said. Earlier on Thursday, the company said it expected its own sales to increase by about 8-14% annually through 2030.

ASML remains bullish for 2030 outlook as AI demand stays high

The confirmation of earlier guidance from the Dutch semiconductor group is aimed at boosting investor confidence following the company's disappointing order intake in the third quarter of the year. ASML has reiterated its outlook for revenue for the next five years, to 2030. The company revealed this was mainly based on expectations that artificial intelligence (AI) demand would continue to soar in the coming few years. The share price jumped 6.99% on Thursday afternoon, trading at €671.60. The company used 2024 Investor Day to highlighted current technology and global market trends, while also providing more details about its long-term strategy. ASML said it expects its 2030 revenue to be somewhere between €44bn and €60bn. It also expected a gross margin of anywhere between 56% and 60%. The guidance reiteration is expected to go a long way in boosting investor confidence following the company's disappointing order intake in the third quarter of the year. Although demand for AI chips has been strong, the company has also faced declining demand from buyers such as mobile phone manufacturers, vehicle companies and PC makers. However, the long-term outlook for the semiconductor industry continues to remain robust, as the chips can be used in a variety of applications such as computers, vehicles, solar panels, household appliances and much more. They are also key in a range of artificial intelligence technology. ASML expects semiconductor sales to touch more than $1tn (€0.95tn), with the company also estimating that the semiconductor market worldwide would see a growth rate of about 9% between 2025 and 2030. Christophe Fouquet, the president and chief executive officer (CEO) of ASML, said in a statement on the company's website: "We expect that our ability to scale EUV technology into the next decade and extend our versatile holistic lithography portfolio, positions ASML well to contribute to, and leverage the Artificial Intelligence (AI) opportunity, and allows ASML to deliver significant revenue and profitability growth." Roger Dassen, the executive vice president and chief financial officer (CFO) of ASML, also said in the statement: "The expected growth in semiconductor end-markets and increasing lithography spending on future nodes, give us confidence in strong demand for our products and services. "We confirm our capital allocation strategy, and expect to continue to return significant amounts of cash to our shareholders through a combination of growing dividends and share buybacks." ASML net sales rise in the third quarter ASML reported net sales of €7.5bn in the third quarter of the year, up from €6.2bn in the second quarter of the year. Net income was €2.1bn in Q3 2024, up from €1.5bn in Q2 2024. Fouquet said in the third quarter earnings press release: "While there continue to be strong developments and upside potential in AI, other market segments are taking longer to recover. It now appears the recovery is more gradual than previously expected. This is expected to continue in 2025, which is leading to customer cautiousness." With the rising tensions between the EU and China, as well as between China and the US, especially in the wake of the recent US elections, the EU has continued to focus on building its domestic semiconductor competence. This has mainly been supported by the European Chips Act which says: "Europe must reinforce its capabilities in semiconductors to ensure future competitiveness and maintain its technological leadership. "Security of supply of semiconductors must be ensured to enhance the Union's strategic autonomy. The semiconductor sector is both capital and knowledge intensive. Supply chains are global, complex and currently rely on few manufacturing locations, in particular in the Far East." This focus on domestic semiconductor production is also likely to boost demand for ASML.

ASML shares rise as analysts cheer guidance for sales growth through 2030 By Investing.com

Investing.com - ASML (AS:ASML) has said it sees sales growing by an average of 8% to 14% over the next five years thanks in part to a boom in enthusiasm around artificial intelligence fueling demand for its computer chip equipment. Europe's biggest tech company, ASML delivered the guidance prior to its investor day in the Netherlands. In a statement, Chief Executive Christophe Fouquet argued that ASML's ability to scale its most advanced chip manufacturing technology into the next decade positions the company well to "contribute to, and leverage the artificial intelligence opportunitiy." Revenues and profits would subsequently increase significantly, Fouquet said. Revenue is tipped to between 44 billion euros and 60 billion euros by 2030, while gross margins are expected to come in at 56% to 60% -- matching its prior outlook given in 2022. Analysts at JPMorgan Chase (NYSE:JPM) said the lack of changes was a "positive," particularly after ASML unveiled lower-than-anticipated sales expectations for its 2025 fiscal year in October. "We did not expect the company to raise guidance for 2030 after its miss of 2025 guidance and are of the view that though an AI growth dividend exists for ASML there was no need for the company to guide for it now given the [...] weaker-than-expected consumer environment," the analysts led by Sandeep Deshpande wrote in a note to clients. They added that ASML's current forecast implies roughly 10% compound annual growth in revenue between next year and 2030, as well as operating income expansion of around 15%. The figures "should make the stock attractive for investors as the market begins looking beyond the ongoing semiconductor downturn," the JPMorgan analysts said. ASML has been hit by its customers, including tech firms like Taiwan Semiconductor Manufacturing Corp. and Intel (NASDAQ:INTC), reining in equipment orders due to recently tepid demand for non-AI chips. The group also faces bans on selling its most of its high-end lithography gear to China, and investors are wary about the prospects for its operations in the country following Donald Trump's victory in the US presidential election last week. Shares in ASML had risen by more than 5% in mid-morning European trading on Thursday.