ASML reports robust fourth-quarter net bookings, exceeding expectations despite concerns raised by DeepSeek's affordable AI model. CEO Fouquet remains optimistic, predicting increased chip demand driven by wider AI adoption.
ASML reported a significant surge in fourth-quarter net bookings, reaching 7.09 billion euros, a remarkable 169% increase compared to the previous quarter. This strong performance indicates sustained high demand for ASML 's advanced chipmaking equipment, even amidst concerns raised by DeepSeek's low-cost AI model regarding AI spending trends. Earlier this week, ASML experienced losses during a widespread tech market downturn triggered by the launch of DeepSeek's R1 reasoning model.
This Chinese AI startup's model claims to outperform OpenAI in both cost and performance, prompting questions about the substantial investments made by leading AI players like OpenAI and Microsoft in Nvidia GPUs, essential for training and running advanced AI models. There were concerns that this development could potentially impact the demand for ASML's high-precision extreme ultraviolet (EUV) machines, which are crucial for manufacturing the most sophisticated microchips. Notably, EUV tools contributed 3 billion euros to ASML's fourth-quarter net bookings.Despite these concerns, ASML CEO Christophe Fouquet expressed optimism about the emergence of cost-effective AI models like DeepSeek's R1. He believes this trend will drive increased demand for semiconductors rather than a decrease. Fouquet stated that a lower cost of AI could lead to more applications, ultimately resulting in higher demand for chips over time. He also emphasized that ASML has not observed any signs of a slowdown in demand for AI-specific chips. While acknowledging the industry buzz surrounding DeepSeek, Fouquet stated that ASML has not received any inquiries from customers regarding the potential impact of the Chinese firm's model on chip demand. Fouquet further anticipates a shift in demand dynamics within China in 2025. Over the past two years, ASML witnessed a surge in demand for its chipmaking tools in China as domestic firms sought to build up their inventories in anticipation of U.S. export restrictions on advanced semiconductor equipment. However, this surge has since subsided, according to Fouquet, who expects a more balanced demand ratio in China compared to other markets this year
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