ASML orders beat expectations as AI arms race boosts demand

The Dutch semiconductor equipment maker reported €5.4 billion ($6.3 billion) in bookings in the period, it said in a statement Wednesday. That compares to €4.9 billion expected by analysts, according to data compiled by Bloomberg.

ASML, which is the only company that makes extreme ultraviolet lithography machines needed to produce the most sophisticated AI chips, is benefiting from the boom in spending. OpenAI, which has become the world’s most valuable startup off the back of its AI models, has already struck deals for data centers and chips that easily top $1 trillion.

“We have seen continued positive momentum around investments in AI, and have also seen this extending to more customers,” Chief Executive Officer Christophe Fouquet said in the statement.

Some of ASML’s biggest clients, including Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co., recently reported robust AI chip demand. ASML shares have rallied 25% so far this year, making it Europe’s biggest company by market capitalization.

Also Read: Samsung shares hit fresh record after AI chip boom lifts profit

The chip toolmaker plans to ride the AI boom in the coming years, with a target to grow annual revenue to as much as €60 billion in 2030 from €28.3 billion last year. It is developing a project that has the potential to double its workforce based near its Veldhoven, Netherlands headquarters.

The strategic importance of ASML’s machines have caught the company up in geopolitical fights as trade tensions surge around the globe. It faces restrictions on what it can sell to China, one of its largest markets, stemming from US attempts to rein in Beijing’s chip industry.

Last week, a US House committee said ASML along with other toolmakers were boosting China’s semiconductor industry and supporting its military. The panel called for tighter controls on sales.

ASML is also bracing for disruptions due to rare earth restrictions imposed by China last week, Bloomberg News reported, citing a person familiar with the company.