Critical chip firm ASML posts quarterly bookings surge on heated AI demand

Dutch semiconductor giant ASML on Wednesday reported a big jump in fourth-quarter net bookings, suggesting strong demand for its advanced chipmaking tools even as DeepSeek’s low-cost model raises concerns over AI spending.

Here’s how ASML did versus LSEG consensus estimates for the fourth quarter:

• Net sales: 9.26 billion euros versus 9.07 billion euros expected.
• Net profit: 2.69 billion euros versus 2.64 billion euros expected.

ASML said that net bookings, a key indicator of order demand, came in at 7.09 billion euros.

That was up 169% from the 2.63 billion euros ASML reported in the third quarter, and exceeded the 3.99 billion euros expected by analysts polled by Visible Alpha, according to Reuters.

ASML suffered losses during a global tech sell-off earlier in the week after the rollout of Chinese startup DeepSeek’s R1 reasoning model, which claims to undercut OpenAI on both cost and performance.

The move triggered questions over eyewatering spending from the likes of leading AI players OpenAI and Microsoft on Nvidia graphics processing units, which are needed to train and run the most advanced AI models.

This could hit demand for ASML’s high-precision extreme ultraviolet (EUV) machines, which are used to print the most advanced microchips. EUV tools accounted for 3 billion euros of ASML’s fourth-quarter net bookings.

Michael Field, chief equity strategist at Morningstar, told CNBC’s “Squawk Box Europe” that ASML’s fourth-quarter results vindicate the view that the chip firm isn’t “overvalued” or “full of puff.” ASML is Morningstar’s top AI pick in Europe, he added.

“Genuinely, we think the numbers support the [investment] case and, actually, we think the shares are worth more like 850 (euros) — which, given the pullback you’ve seen in the last few weeks, offers a pretty good opportunity for investors,” Field said Wednesday.

ASML shares closed at 646.60 euros per share Tuesday.