ASML bookings surge as AI chip demand boosts purchases of its critical semiconductor tools

ASML reported second-quarter earnings and sales that beat forecasts, as interest in artificial intelligence chips drives up demand for the Dutch firm’s critical semiconductor making equipment.

Here’s how ASML did versus LSEG consensus estimates:

• Net sales: 6.24 billion euros ($6.8 billion) versus 6.03 billion euros expected
• Net profit: 1.58 billion euros versus 1.43 billion euros expected

ASML previously forecast second-quarter net sales of between 5.7 billion euros and 6.2 billion euros. Net sales fell 9.5% year-on-year, while net income dropped by 18.7%. This was narrower than the falls logged last quarter.

Net bookings — a key metric for the market, marking orders for ASML machinery — totaled 5.6 billion euros in the June quarter, rising more than 24% year-on-year.

The Dutch firm is one of the most important semiconductor companies in the world, producing tools known as extreme ultraviolet (EUV) lithography machines, which are required to manufacture the most advanced chips.

ASML has previously called 2024 a “transition” year as it expects the semiconductor industry to start to recover after a tough 2023. The company kept its outlook for the full year unchanged. ASML now said it forecast third-quarter net sales of between 6.7 billion euros and 7.3 billion euros.

“While there are still uncertainties in the market, primarily driven by the macro environment, we expect industry recovery to continue in the second half of the year,” ASML CEO Christophe Fouquet said in a statement.

“We see 2024 as a transition year with continued investments in both capacity ramp and technology. We currently see strong developments in AI, driving most of the industry recovery and growth, ahead of other market segments.”

The company also faces geopolitical headwinds. Following pressure from the U.S., the Dutch government last year introduced curbs on the export of advanced semiconductor equipment — including ASML’s machinery.

ASML previously said that export restrictions would impact 10% to 15% of it’s China sales this year.

As semiconductor stocks across the board have rallied this year, ASML has also seen its share price lifted 44%.

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