The world's largest semiconductor equipment manufacturer, ASML, based in the Netherlands, saw its stock price soar early on July 15 in European markets, driven by strong second-quarter results and a significant upgrade to its annual forecast.
According to reports from CNBC and other outlets, ASML's stock was trading at €1,647.80, up €92 (5.91%) from the previous trading day as of 9:46 AM local time. The stock initially rose nearly 7% but later moderated its gains. Nevertheless, ASML's stock has surged 115% this year.
Earlier in the day, ASML announced its second-quarter results, reporting revenue of €9.33 billion (approximately $16 billion), exceeding the market median estimate of €8.8 billion compiled by financial data provider LSEG. The company's net profit also surpassed expectations, reaching €2.92 billion compared to the forecast of €2.62 billion.
Additionally, ASML raised its annual revenue forecast from a previous range of €36 billion to €40 billion to a new range of €43 billion to €45 billion. The company also increased its gross margin forecast from 51% to 53% to a new range of 54% to 56%. This marks the second time ASML has upgraded its annual forecast this year.
ASML CEO Christoph Hocke stated, “Customers are accelerating their plans to expand production capacity, leading to increased orders across our entire product line and greater visibility into long-term demand.”
ASML is the only company in the world that produces extreme ultraviolet (EUV) lithography equipment essential for advanced semiconductor manufacturing. Its major clients include TSMC, Samsung Electronics, SK Hynix, and Micron, all of which are expanding their production capabilities to meet rising demand for AI semiconductors.
In response to increasing demand, ASML plans to boost production capacity for its low numerical aperture (NA) EUV equipment and deep ultraviolet (DUV) immersion equipment by 30% compared to previous plans.
CEO Hocke also noted that Intel plans to use ASML's high-NA EUV equipment for some production of its next-generation semiconductors, known as 'Panther Lake.' If implemented, this would mark the first use of high-NA EUV technology in mass production of advanced semiconductors.
However, the potential for the U.S. to tighten export regulations on ASML's advanced semiconductor equipment to China remains a variable. Despite regulatory uncertainties, ASML maintains its forecast that revenue from China will account for about 20% of its total net sales this year.
Some analysts suggest that additional regulations could prompt Chinese customers to make preemptive purchases. Javier Corleone, a stock analyst at Morningstar, told CNBC that there have been instances where Chinese clients rushed to secure equipment ahead of new regulations, indicating that export restrictions could actually stimulate demand for equipment purchases in China.
* This article has been translated by AI.
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