ASML posted higher-than-expected revenue and profit in the fourth quarter of 2024 (Q4 2024), driven by demand for its advanced semiconductor manufacturing equipment. The Dutch lithography company reported net sales of €9.3bn for the quarter, exceeding its previous guidance. Gross margin stood at 51.7%, while net income reached €2.7bn.
Full-year net sales for 2024 totalled €28.3bn, slightly higher than the €27.6bn recorded in the previous year. Net income for the year was €7.6bn, with a steady gross margin of 51.3%. Despite a decline in the total number of new lithography systems sold, dropping from 421 in 2023 to 380 in 2024, the growth was supported by strong demand for extreme ultraviolet (EUV) systems and service-related revenue.
Stock market impact and AI industry developments
ASML’s stock faced pressure earlier in the week due to a broader sell-off in technology shares following the introduction of a low-cost AI language model by Chinese firm DeepSeek. The release prompted questions about the sustainability of high spending levels on advanced AI hardware, particularly the demand for high-performance graphics processing units (GPUs) from companies such as OpenAI and Microsoft.
ASML’s net bookings in the fourth quarter reached €7.1bn, more than doubling from the €2.6bn recorded in the previous quarter. Of these orders, €3bn were for EUV systems, reflecting continued investment in high-precision semiconductor manufacturing tools. For the full year, total net bookings amounted to €18.9bn, slightly below the €20bn recorded in 2023. However, the sharp rebound in orders in the final quarter suggests that semiconductor manufacturers are resuming long-term capital investments following a period of cautious spending.
For 2025, ASML has forecast total net sales between €30bn and €35bn, with a gross margin between 51% and 53%. First-quarter net sales are expected to range between €7.5bn and €8bn, with a gross margin between 52% and 53%.
“As we communicated last October, we expect total net sales for the year between €30 billion and €35 billion, with a gross margin between 51% and 53%,” said ASML’s president and CEO, Christophe Fouquet. “Consistent with our view from the last quarter, the growth in artificial intelligence is the key driver for growth in our industry. It has created a shift in the market dynamics that is not benefiting all of our customers equally, which creates both opportunities and risks as reflected in our 2025 revenue range.”
While some semiconductor manufacturers are ramping up production capacity in response to rising demand for AI-driven computing, others face uncertainty, contributing to variability in ASML’s revenue projections for the year. The company’s position remains tied to the adoption of its High-NA EUV systems, a next-generation lithography technology critical for producing advanced chips. Earlier this month, Taiwan Semiconductor Manufacturing Company (TSMC) reported fourth-quarter revenue that exceeded market expectations, bolstered by increasing demand for AI-related semiconductors. The contract chipmaker posted revenue of TWD868.4bn ($26.3bn) for the quarter, surpassing analyst estimates of TWD853.57bn ($25.88bn), according to LSEG data. This represented a 34.4% year-on-year increase, aligning with TSMC’s previous forecast of $26.1bn to $26.9bn.
Read more: ASML’s reduced sales forecast raises concerns over global chip demand
