On June 16, 2023, the ASML logo was visible at the headquarters in Veldhoven, the Netherlands.
Piroschka Van De Wouw | Piroschka Van De Wouw Reuters
ASML The Dutch company reported second-quarter earnings and sales that topped expectations as interest in artificial intelligence chips boosted demand for key semiconductor manufacturing equipment.
Here’s how ASML’s performance compares to the LSEG consensus forecast:
- Net sales: €6.24 billion (US$6.8 billion) Expected to be €6.03 billion
- net income: 1.58 billion euros, expected to be 1.43 billion euros
ASML previously forecast second-quarter net sales of between 5.7 billion euros and 6.2 billion euros. Net sales fell 9.5% compared with the same period last year, and net profit fell 18.7%. This is a smaller drop than last season.
Net bookings, a key market indicator for measuring ASML’s machinery orders, totaled 5.6 billion euros in the second quarter, up more than 24% from the same period last year.
The Dutch company is one of the world’s most important semiconductor companies, producing tools called extreme ultraviolet (EUV) lithography machines, which are needed to make the most advanced wafers.
ASML previously called 2024 a “transitional” year and expected the semiconductor industry to begin to recover after a difficult 2023. ASML currently says it expects third-quarter net sales to be between 6.7 billion euros and 7.3 billion euros.
ASML CEO Christophe Fouquet said in a statement: “While uncertainty remains in the market, driven mainly by the macro environment, we expect the industry recovery to continue in the second half of the year.”
“We view 2024 as a transition year and will continue to invest in capacity improvements and technology. Currently, we are seeing strong development in artificial intelligence, driving recovery and growth in most industries, ahead of other market segments.”
Some of the world’s largest chipmakers are building new semiconductor manufacturing plants in the United States, such as TSMC and Samsung
“The industry is expected to pick up cyclically in 2025. Therefore, we need to prepare for the many new fabs being built around the world. These fabs will be spread out in different geographical locations and will be critical to all of our customers. It has strategic significance.
The company also faces geopolitical headwinds. Under pressure from the United States, the Dutch government last year imposed restrictions on exports of advanced semiconductor equipment, including ASML’s machines.
ASML previously said export restrictions would affect 10% to 15% of its sales in China this year.
However, China remained an important part of ASML’s business in the second quarter, accounting for 49% of sales, the same as the previous quarter.
As semiconductor stocks have risen across the board this year, ASML’s stock price has also risen 44%.
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