ASML's Q3 Results Signal Strong AI Demand Amid China Slowdown

Global AI rush helps ASML beat orders estimates, but China outlook dims

Oct 15 (Reuters) - ASML (ASML.AS), opens new tab, the world's biggest supplier of computer chip-making equipment, reiterated on Wednesday it expects to benefit from booming AI investment, even as it warned Chinese demand was expected to significantly drop next year. CEO Christophe Fouquet said Europe's largest tech firm by market capitalization was seeing "continued positive momentum around investments in AI." That boom was helping customers both in advanced logic chips - those used in smartphones and AI datacenters - and advanced memory chips also needed for AI. Shares, which have surged 37% since the start of September, were up 3.2% in morning trading to 873.80 euros. The results follow a flurry of mega deals between AI firms and chipmakers, notably plans by OpenAI in the past month to build $1 trillion or more in data centre capacity. That portends more demand for chips, which make up around half the cost of data centres. Net bookings, the most closely-watched earnings figure, were 5.40 billion euros ($6.27 billion) in the third quarter, versus analysts' consensus estimate of 5.36 billion euros. CHINA DECLINE FOLLOWS BOOM YEARS ASML said it expects Chinese sales to fall "significantly" next year, after having made up nearly half of company sales in 2024 and a third so far in 2025. CFO Roger Dassen said on a media call the decline was a "normalization" and not due to stockpiling amid the U.S.-China trade war. U.S.-led export restrictions mean ASML cannot sell its most advanced tools in China, a point of contention between the superpowers, with China recently tightening control of exports of rare earth metals. ASML said it would not be affected by those restrictions in the short term. ASML said sales will be, at worst, flat in 2026, from around 32.5 billion euros ($37.82 billion) in 2025. "We believe the bearish view of a worse than expected 2026 will be put to rest and the market will focus on the extent the company can grow in 2027", JPMorgan analysts said. ASML's lithography tools, key for making chip circuitry, are sold to TSMC of Taiwan (2330.TW), opens new tab - which makes most AI chips for Nvidia - and to other logic chip firms such as China's SMIC (0981.HK), opens new tab and Intel (INTC.O), opens new tab. It also serves memory chip makers like Samsung (005930.KS), opens new tab, SK Hynix (000660.KS), opens new tab and Micron (MU.O), opens new tab. The company reported third-quarter net income of 2.12 billion euros, in line with the 2.11 billion euros analysts expected, according to LSEG IBES data. ($1 = 0.8607 euros) Reporting by Toby Sterling in Amsterdam, Nathan Vifflin in Gdansk; Editing by Matt Scuffham, Kim Coghill and Bernadette Baum Our Standards: The Thomson Reuters Trust Principles., opens new tab

What Chipmaking Equipment Giant ASML's Q3 Results Said About AI Demand, China Trade

Shares of ASML and other stocks in the semiconductor sector climbed Wednesday after a down day for the sector amid worries about U.S.-China trade tensions. Chipmaking equipment supplier ASML says it's upbeat on AI demand, even in the face trade policy headwinds. The Netherlands-based firm said it doesn't see its 2026 sales falling from 2025 levels even though it expects sales in China to "decline significantly," thanks in part to strong demand for its machines to make chips supporting AI data centers. CEO Christophe Fouquet said the company has seen "continued positive momentum around investments in AI, and (has) also seen this extending to more customers." U.S.-listed shares of ASML (ASML) were up about 3% in recent trading. Shares of other companies in the semiconductor industry, including Nvidia (NVDA), Broadcom (AVGO), Advanced Micro Devices (AMD), and Lam Research (LRCX), also gained after a down day for the sector yesterday. ASML reported third-quarter earnings per share of 5.49 euros ($6.38), above analysts' estimates compiled by Visible Alpha, though its revenue of 7.52 billion euros ($8.74 billion) missed. Fouquet said ASML sees current-quarter sales of between 9.2 billion and 9.8 billion euros ($10.7 billion and $11.4 billion), above the analyst consensus, and that the company plans to provide more details on its 2026 outlook in January. With Wednesday's gains, ASML shares have added 46% in 2025 so far.

ASML Q3 Earnings Beat On Strong EUV Demand - ASML Holding (NASDAQ:ASML)

ASML (NASDAQ:ASML) reported third-quarter 2025 results showing slightly lower revenue but stronger-than-expected earnings, driven by robust demand for its Extreme Ultraviolet (EUV) lithography systems. * ASML is demonstrating strength. See the trading setup here. The chip equipment maker expects 2026 net sales to match or exceed 2025 levels, with growth fueled by continued investment in artificial intelligence infrastructure. Goldman Sachs analyst Alexander Duval maintained a Buy rating on ASML and raised the price forecast from 935 euros (around $1,091) to 1,050 euros (around $1,226). Also Read: ASML Taps Insider Marco Pieters To Lead Technology In AI Era Duval noted that ASML's third-quarter 2025 revenue fell slightly below Visible Alpha Consensus, but its EBIT of approximately 2.5 billion euros came 2% above expectations. The company booked 5.4 billion euros in orders for third-quarter 2025, largely in line with consensus, including 3.6 billion euros in EUV orders, significantly exceeding the 2.2 billion euros forecast, the analyst said. He highlighted several key drivers supporting ASML's outlook, including accelerating AI and EUV demand, normalization of China sales offset by strong AI-led growth elsewhere, memory scaling to 4F² boosting EUV intensity, and AI applications driving faster node migration to reinforce long-term lithography demand. Duval emphasized ASML's 2026 visibility has improved, as the company expects net sales not to fall below 2025 levels. The analyst cited continued investment in AI infrastructure, expanding AI adoption across more customers, and growing EUV layer usage in Logic and DRAM as positive trends. He noted the strong order intake in recent quarters means the cadence of orders required to meet 2026 estimates is below the historical five-year median, indicating achievable growth. While ASML anticipates a significant revenue decline from China due to normalization, he stressed robust AI-related demand for EUV tools elsewhere will more than offset this headwind. Duval highlighted Logic's transition to Gate-All-Around (GAA) transistors progresses without increasing EUV layers. Memory's adoption of 4F² architecture drives more complex designs and sustained demand for both EUV and DUV systems, the analyst noted. He pointed out AI workloads are accelerating demand for advanced Logic and DRAM nodes, justifying faster adoption of newer, higher-cost nodes with increased wafer pricing. This structural shift now positions AI rather than smartphones as the primary driver of leading-edge node adoption. The ongoing 2nm ramp exemplifies this trend, with broader AI adoption expected to intensify competition and accelerate migration to advanced process technologies. Based on these developments, Duval maintained his Buy rating on ASML and raised fiscal 2026-29 revenue and profit estimates by about 1%, reflecting strong Logic and Memory demand, partly offset by lower China contributions. The analyst also adjusted EBIT estimates up 1%-4% and left EPS forecasts mostly unchanged. The analyst increased his price forecast reflecting ASML's strong EUV positioning, limited competition, and moderate China exposure. ASML Price Action: ASML Holding shares were trading higher by 0.86% to $1,018.12 at publication on Thursday. Read Next: ASML Ends Ties With Former France FM Bruno Le Maire, Stock Hits 52-Week High Photo: Shutterstock ASMLASML Holding NV$1017.440.76%Overview 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 Just Shared Fantastic News for Nvidia, Broadcom, and AMD Investors

ASML's most advanced machines are dominating its order volumes. On Wednesday, shares of ASML (ASML 1.64%) popped by 2.7% in response to its third-quarter earnings report. The artificial intelligence (AI) growth stock rose 16% from Sept. 15 to Oct. 15. But it wasn't just investors in ASML listening in to the report. Here's the hidden-gem metric from that earnings report that is an encouraging sign for Nvidia (NVDA 0.34%), Broadcom (AVGO 0.45%), and Advanced Micro Devices (AMD 3.90%) shareholders. ASML's role in the AI value chain ASML makes photolithography machines that are used to print circuit designs layer by layer onto silicon wafers. Photolithography is arguably the most complicated step in chip production. And while other equipment makers like Applied Materials and Lam Research compete with it in the deposition and etching steps, no company holds a candle to ASML when it comes to advanced photolithography equipment. ASML's breakthrough technology is extreme ultraviolet lithography (EUV) machines, which are capable of printing significantly smaller and finer features than the previous best-in-class technology, deep ultraviolet (DUV). By reflecting light using mirrors rather than refracting it with lenses, EUV machines achieve a small wavelength that is paramount for printing precise features on today's most advanced chips. Put simply, the ability to print smaller features allows chipmakers to squeeze more elements into a given space. The result: more powerful chips. So far, only ASML has managed the technical feat of creating EUV machines. As such, its equipment is vital for manufacturing today's most advanced graphics processing units (GPUs) and central processing units (CPUs) -- hardware that can handle complex AI workflows. They're also useful for manufacturing the dynamic random access memory (DRAM) chips that AI models depend on for storing and quickly accessing data. EUV is on the rise For the third quarter, ASML reported total net sales of 7.52 billion euros, which was down 2.3% from the second quarter. However, the standout number from the earnings report was net bookings of 5.4 billion euros, two-thirds of which came from orders for EUVs. Net bookings include all system sales orders. In the quarter, ASML sold nine of its EUV systems for a total of 3.6 billion euros -- or an average of 400 million euros per unit. ASML sells its machines to semiconductor fabricators such as Taiwan Semiconductor, Samsung Electronics, and Intel. The uptick in EUV machine sales is great news for Nvidia, Broadcom, and AMD because they rely on photolithography machines to manufacture their most advanced chips. As foundries purchase and install more EUV lithography machines, they will be able to expand their production of chips designed to be manufactured using advanced process nodes such as 3 nanometers (NM) or 2 nanometers. The smaller the node, the more transistors can fit onto a single microchip. Driving global AI chip production EUV's growing role in ASML's sales mix is great news for the companies that design AI-capable chips because it means that production capacity for those chips will grow, allowing them to fulfill orders from hyperscalers and other data center operators faster. And good news for companies should be good news for their investors. Meanwhile, EUV machines, especially ASML's ultra-advanced high-NA EUV machines, are pushing the bounds of what is possible in chip manufacturing. They'll almost certainly play an integral role in the manufacture of the next generations of GPUs and custom AI accelerators as well.

ASML rises as orders beat estimates amid AI rush, China demand to see slowdown in 2026

Shares of ASML (NASDAQ:ASML) rose about 4% premarket on Wednesday after the company's orders surpassed estimates in the third quarter and it noted that sales next year would not be less than that in 2025. However, the Dutch chip equipment maker ASML expects significantly lower demand from Chinese customers in 2026, which may partially impact sales, especially for DUV systems, though overall 2026 net sales are still expected to match or exceed 2025 levels due to growth in EUV and AI-driven investment. ASML forecasts fourth quarter 2025 net sales between €9.2B and €9.8B, gross margin between 51%-53%, and full-year 2025 net sales growth of approximately 15% with a gross margin around 52%. ASML sees continued positive momentum and expanded customer base in advanced Logic and DRAM due to strong commitment and investment in AI, supporting EUV system demand.

Why Investors Are Paying Attention to ASML Stock | The Motley Fool

ASML might not make the headlines like Nvidia, but it's the quiet enabler behind the entire AI revolution. In every major technological shift, there's a company quietly powering it from behind the scenes. For the artificial intelligence boom, that company is ASML Holding (ASML 1.45%). The Dutch firm doesn't make chips like Nvidia or Intel -- it builds the machines that make those chips possible. Its technology sits at the heart of modern computing, and as AI accelerates demand for cutting-edge semiconductors, ASML's role is becoming even more critical. Here's why investors are paying attention to ASML now. ASML builds lithography systems -- machines that chipmakers use to "print" billions of tiny circuits onto silicon wafers. Those circuits form the brains of our digital world: powering smartphones, data centers, cars, and virtually every AI model running today. If semiconductor manufacturing were a printing process, ASML's systems would be the ultra-precise printers that bring chip designs to life. Using beams of ultraviolet light, these machines etch patterns thinner than a strand of hair. That precision defines how powerful, efficient, and advanced a chip can be. Its crown jewel is Extreme Ultraviolet (EUV) lithography -- a technology so complex that ASML is the only company on the planet capable of building it. Each EUV system costs more than $200 million, weighs over 180 tons, and contains more than 100,000 parts. EUV machines are indispensable for producing the most advanced chips that drive iPhones, GPUs, and high-performance AI servers. Without ASML, those chips couldn't be made. That explains why ASML counts Taiwan Semiconductor Manufacturing, Intel, and Samsung Electronics as its biggest customers. It's the one supplier the entire semiconductor industry depends on. Artificial intelligence is creating a once-in-a-generation upgrade cycle across the chip industry. Every new AI model demands more computing power, and that power comes from denser, faster, more energy-efficient chips. To make those chips, manufacturers need ASML's machines. That link is direct and consequential: as AI spending grows, so does demand for ASML's equipment. Each new fab, node, and GPU generation pushes more orders toward ASML since these advanced chips can only be produced using ASML's EUV technology. What excites long-term investors is that this isn't a short-term cycle. It's a structural shift. AI workloads are becoming a core layer of the global economy -- embedded in cloud computing, automotive systems, healthcare, and beyond. ASML is also preparing its next leap forward: High-NA EUV (High Numerical Aperture). These next-generation machines push lithography to new limits, allowing chipmakers to print even finer patterns. Intel has already ordered the first machine, which sells for over $400 million each. Put simply, AI isn't just a tailwind for ASML -- it's a secular growth driver that could define its next decade of growth. ASML's dominance is not an accident -- it's the product of decades of persistence, collaboration, and near-impossible engineering. The company spent a few decades and tens of billions of dollars perfecting EUV technology. Each EUV machine operates in a vacuum, uses light generated from a plasma hotter than the surface of the sun, and aligns components with atomic precision. Replicating that isn't just expensive--it's nearly unthinkable. Even if a competitor started today, it would likely take years, if not decades, to reach commercial viability, assuming it could even build the same supplier network. That's why ASML effectively has a technological monopoly in EUV lithography. The company also enjoys deep, sticky relationships with its customers. Every ASML tool is calibrated specifically for a customer's process, creating years of collaboration and data exchange. Once a fabrication plant is built around ASML systems, switching suppliers isn't realistic. And because its machines are strategically vital, ASML has become a focal point in geopolitics. The Netherlands and the U.S. have restricted exports of their most advanced systems to China, underscoring how essential the company has become to national security and global supply chains. That combination -- technical lead, customer lock-in, and geopolitical importance -- creates a moat that few companies can match. ASML isn't a chipmaker; it's the company that makes modern chips possible. Its EUV systems sit at the center of every technological advance that matters -- from AI to smartphones. For investors, it represents something rare: a company with near-unshakable competitive advantages, a clear growth runway, and a business model that scales with the future of technology itself. It's a company worth keeping on your radar.

ASML Has More Work to Do on AI

Sales and earnings gains need to accelerate from current levels. Here's our initial take on ASML Holding's (ASML 3.67%) third-quarter financial report. Key Metrics Is ASML Taking Full Advantage of AI? ASML Holding's third-quarter results didn't exactly reflect the views that many investors have about companies involved in the rise of artificial intelligence. The maker of lithography equipment for producing semiconductors reported only a modest year-over-year increase in revenue, falling short of what most investors had wanted to see. Earnings growth of 4% was a little better, but both revenue and earnings were lower than they had been in the first and second quarters. Unit sales of lithography systems also remained at lower run rates than prevailed during the year-ago period. Gross margin of 51.6% was up from the year-ago quarter but down from earlier this year. Nevertheless, CEO Christophe Fouquet largely focused on the positive aspects of ASML's business. He lauded the launch of its first advanced packaging product as an important move forward in 3D integration, and he pointed to the ongoing benefits from the company's partnership with Mistral AI to integrate more useful features into its equipment to boost productivity. Fouquet also set expectations for 15% sales growth for the full 2025 year. However, most of that growth came early in 2025. ASML's projections for the fourth quarter suggest quarterly revenue will come in between down 1% and up 6% compared to the same period last year. Moreover, the CEO pointed out that demand from China will "decline significantly" compared to 2024 and 2025. Immediate Market Reaction ASML shares were up more than 5% early in the regular morning trading session on Wednesday after the announcement. Even with somewhat sluggish backward-looking figures for the quarter, shareholders kept their attention squarely on ASML's future. Solid order bookings and positive views about the company's 2026 forecast were apparently enough to prompt the push back upward. As a result, ASML's share price could challenge all-time record highs. ASML stock spent much of 2025 in a fairly tight range as sentiment over the chipmaking equipment manufacturer swung. Concerns about global trade play a role for the Dutch company as well, and new tariff tension could raise new questions for ASML, particularly in regard to its business with China. What to Watch The big question is whether ASML can reach its ambitious longer-term targets. The company still expects 2030 revenue to come in between 44 billion and 60 billion euros, and it hopes to get gross margin levels up to as much as 60%. Yet investors might not really be satisfied with that growth rate. Based on fourth-quarter projections, ASML anticipates total sales for 2025 of between 32.1 billion and 32.7 billion euros. That implies average annual growth of between 6% and 13% over the next five years. And ASML's statement that it "does not expect 2026 total net sales to be below 2025" didn't exactly inspire immediate confidence either. For a hardware company, a growth rate of 13% from already significant levels would be fairly impressive in most market environments. However, AI investors largely expect companies to show faster growth. With an earnings multiple of roughly 35, ASML isn't quite as richly valued as some of its higher-growth AI peers, but the price still likely reflects greater excitement about ASML's AI future than the company is currently signaling.

ASML Logs Strong Orders Amid AI Spending Frenzy -- Update

ASML Holding posted better-than-expected orders of its chip-making equipment for the third quarter as demand for sophisticated semiconductors to power artificial intelligence shows no sign of abating. The Dutch group reported orders of 5.40 billion euros ($6.27 billion), up from 2.63 billion euros a year earlier and above analysts' forecast of nearly 5.36 billion euros, according to consensus estimates by Visible Alpha. The company, which sells chip-making tools to the likes of Intel and Samsung Electronics, booked 3.6 billion euros in orders for its extreme ultraviolet lithography machines, high-end systems that enable semiconductor producers to print the most intricate layers on chips. Analysts had forecast 2.22 billion euros in EUV orders. Meanwhile, ASML said it doesn't expect sales next year to be below the 2025 figure. The group confirmed its guidance for 2025, projecting sales growth of around 15% on year to roughly 32.50 billion euros and a gross margin of about 52%. ASML reported sales of 7.52 billion euros for the quarter, up from 7.47 billion euros a year earlier. The figure is below analysts' forecast but in line with company guidance. Net profit grew to nearly 2.13 billion euros from 2.08 billion euros a year earlier, beating market expectations. Gross profit--a closely watched metric for companies operating in the semiconductor industry--came in at 3.88 billion euros, generating a 51.6% margin that beat consensus and touched the higher end of company guidance. For the current quarter, the company expects sales between 9.2 billion euros and 9.8 billion euros, with a gross margin between 51% and 53%.