Key Points
- ASML’s stock hit a record high on Wednesday after a blowout fourth-quarter report.
- Orders in the quarter were a record €13.2 billion, more than double what was expected.
- The surge is driven by strong demand for AI chips from customers like TSMC.
- The company also announced plans to cut 1,700 jobs and a new €12 billion share buyback.
Shares of the Dutch chip equipment giant ASML soared to an all-time high on Wednesday after the company reported a massive surge in orders and announced a plan to cut 1,700 jobs to boost efficiency. The news is a powerful sign that the artificial intelligence boom is still going strong.
At 9:45 AM EST, ASML Holding N.V. stock (ASML) is trading at approximately $1,462.75, marking a gain of approximately 4.77% so far today. The stock is also up in the European markets, trading at around €1,241.60, an increase of 1.97%.
ASML’s bookings in the fourth quarter came in at a record €13.2 billion ($15.8 billion), more than double what analysts were expecting.
“The last three months have brought a lot of clarity about what AI means for the semiconductor industry,” said the company’s CEO, Christophe Fouquet. “Our customers start to believe that this AI demand is sustainable, and therefore they are moving to building capacity, and they are moving very aggressively.”
ASML is in a unique and powerful position. It is the only company in the world that makes the cutting-edge lithography machines that are needed to produce the most advanced semiconductors. Its customers include all the big names in the chip industry, from TSMC to Intel. Its machinery is essential for making the Nvidia AI chips that are the backbone of the current AI revolution.
The company’s massive order book gives it a clear view into the future, and that future looks very bright. ASML is now forecasting revenue of between €34 billion and €39 billion for this year, which is higher than its previous guidance.
“ASML has knocked it out of the park when it comes to order numbers,” said one analyst.
In a separate move, the company also announced that it will be cutting about 4% of its workforce to “streamline the organization.” It also announced a new €12 billion share buyback program.
