All articles tagged with #asml
At the Leuven hub opening, EU officials and chip leaders argue Europe supplies critical chipmaking tech—such as ASML's EUV systems—challenging the view that the U.S. dominates tech and signaling plans for reverse dependencies and a second Chips Act.
ASML posted record Q4 bookings of €13.2 billion driven by AI-chip demand, raised its 2026 sales outlook to €34-39 billion, and reported €9.6 billion in net profit on €32.7 billion revenue, while announcing about 1,700 job cuts (3.8% of staff) mainly in the Netherlands and the U.S. and a €12 billion share buyback through 2028; the results reflect sustained AI-driven demand for EUV lithography equipment with long-term targets unchanged.
ASML Holding reported record fourth‑quarter bookings of €13.2 billion (about double expectations of €6.3B) with revenue of €9.72B and a 52.2% gross margin. Backlog climbed to €38.8B, led by EUV systems, and China’s quarterly share fell to 36%. The company guided 2026 revenue of €34–€39B (midpoint ~€36.5B) and Q1 2026 revenue of €8.2–€8.9B, while announcing cost cutting of around 1,700 Dutch jobs to sharpen focus on engineering. A sizable portion of bookings is seen for 2027 deliveries, and the stock rose about 6% on the news.
ASML posted a record 13.2 billion euros in Q4 2025 bookings and announced a 12 billion euro buyback through 2028. Q4 revenue was 9.7 billion euros with net profit of 2.84 billion euros; for 2026, the company guides net sales of 34–39 billion euros (midpoint above consensus) and expects at least 20% growth versus 2024. It will cut about 1,700 jobs. AI infrastructure demand underpins the outlook, EUV revenue is set to rise significantly in 2026, and China sales are planned to be about 20% of total in 2026, with memory-chip capacity expansion supporting demand for ASML’s lithography machines.
ASML’s extreme ultraviolet lithography machines — giant, $250 million systems that print ultra-dense chip circuitry — are central to making the AI chips powering data centers and Nvidia’s products. The machines use tin droplets, powerful lasers, and Zeiss mirrors to pattern silicon wafers at 13 nanometers, and are delivered from the Netherlands to major fabs including TSMC, Samsung, SK Hynix, Intel, Micron and Rapidus. ASML shipped 44 EUV systems last year and expects a surge in demand for 2026–27 as AI and cloud infrastructure expand.
A Wall Street Journal report suggests the EU is drafting legislation to boost tech sovereignty, potentially wielding tools like the Anti-Coercion Instrument to curb U.S. tech dependencies, with the Open Digital Ecosystem Strategy seeking public feedback and EU players like ASML seen as strategic leverage in AI, cloud, and hardware sovereignty.
Semiconductor stocks, led by ASML and peers Infineon and STMicroelectronics, fell on rising EU‑U.S. trade tensions and tariff threats, with ASML’s lithography monopoly potentially impacting U.S. chipmakers; the move underscores how policy risks are weighing on the chip sector.
Taiwan Semiconductor (TSMC) committed about $56 billion to expanding AI chip manufacturing, funneling orders to equipment suppliers ASML, Applied Materials, and Lam Research. ASML stands to gain from EUV capacity expansion (dozens of machines at $150–$200M each) as TSMC pushes 2nm and beyond, potentially generating $3–$5B in revenue; Applied Materials just posted its 12th straight earnings beat with solid cash flow and profitability, while Lam Research has surged ~192% year over year on the capex cycle. However, valuations are high across these names and orders may be spread over several years, implying multi-quarter to multi-year upside tied to a broader AI-driven semiconductor buildout.
Market strategist Scott Helfstein of Global X warns that a small disruption in the AI supply chain—centered on semiconductors concentrated in Taiwan (TSMC) and critical EUV equipment from ASML—could disproportionately unsettle market expectations in 2026, alongside concerns about Fed credibility, elevated trade tensions, energy geopolitics, and domestic policy brinkmanship.
The article explores the significance of ASML's $400 million EUV lithography machine, essential for GPU manufacturing and AI development, highlighting its complex technology, geopolitical implications, and the inevitable progression towards more advanced and expensive machines, reflecting on the fleeting nature of technological dominance.
ASML shares rose about 4% after Aletheia Capital upgraded the stock to Buy, citing strong demand driven by expanding semiconductor factories, increased orders for EUV lithography tools used in AI and high-performance computing, and expectations of higher earnings in 2026 and 2027 due to increased chip manufacturing capacity, especially from TSMC.
The semiconductor industry is expected to see significant growth in 2026, driven by AI and advanced chip manufacturing, with top stocks like TSMC, ASML, and Nvidia poised for substantial gains due to increased demand and capacity expansion.
The article recommends buying and holding Nvidia, TSMC, and ASML stocks for the next decade, highlighting their crucial roles in the AI and semiconductor markets, with strong growth prospects driven by expanding AI adoption and technological advancements.
Chinese scientists in Shenzhen have built a prototype EUV lithography machine, marking a significant step toward semiconductor independence and rivaling Western technology, with testing underway and a target to produce working chips by 2028 or 2030, despite ongoing technical challenges and US-led export restrictions.
