ASML Holding NV reported a significant jump in fourth-quarter net bookings, demonstrating continued strong demand for its advanced chipmaking equipment. The company's results come amidst concerns raised by DeepSeek's low-cost AI model regarding potential reductions in AI spending.
ASML reported a significant surge in fourth-quarter net bookings, signaling robust demand for its cutting-edge chipmaking equipment despite concerns raised by DeepSeek's low-cost AI model regarding potential reductions in AI spending. The company announced net bookings of 7.09 billion euros for the quarter, marking a 169% increase from the 2.63 billion euros recorded in the third quarter. This figure surpassed analysts' expectations of 3.99 billion euros, as reported by Reuters.
ASML's performance stands in contrast to the company's earlier losses during a global tech sell-off triggered by the release of DeepSeek's R1 reasoning model. This Chinese startup's model claims to outperform OpenAI in both cost and performance, prompting questions about the sustainability of hefty investments from major AI players like OpenAI and Microsoft in Nvidia GPUs, essential for training and running advanced AI models. This shift could potentially impact demand for ASML's high-precision extreme ultraviolet (EUV) machines, vital for manufacturing the most sophisticated microchips. EUV tools contributed 3 billion euros to ASML's fourth-quarter net bookings. Michael Field, chief equity strategist at Morningstar, emphasized that ASML's quarterly results solidify the belief that the chipmaker is not overvalued. Morningstar considers ASML its top European AI pick. Field stated, 'We genuinely think the numbers support the 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.
ASML Chipmaking AI Spending Deepseek EUV Machines
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