{"id":48185,"date":"2024-07-28T15:31:22","date_gmt":"2024-07-28T19:31:22","guid":{"rendered":"https:\/\/usa.businessupturn.com\/?p=48185"},"modified":"2024-07-28T15:31:22","modified_gmt":"2024-07-28T19:31:22","slug":"asml-bookings-surge-as-ai-chip-demand-boosts-purchases-of-critical-semiconductor-tools","status":"publish","type":"post","link":"https:\/\/www.businessupturn.com\/usa\/asml-bookings-surge-as-ai-chip-demand-boosts-purchases-of-critical-semiconductor-tools\/48185\/","title":{"rendered":"ASML Bookings Surge as AI Chip Demand Boosts Purchases of Critical Semiconductor Tools"},"content":{"rendered":"<p><strong>ASML reported second-quarter earnings and sales that beat forecasts<\/strong>, as interest in artificial intelligence chips drives up demand for the Dutch firm\u2019s critical semiconductor-making equipment.<\/p>\n<p>Here\u2019s how ASML performed versus LSEG consensus estimates:<\/p>\n<ul>\n<li><strong>Net sales:<\/strong> 6.24 billion euros ($6.8 billion) versus 6.03 billion euros expected<\/li>\n<li><strong>Net profit:<\/strong> 1.58 billion euros versus 1.43 billion euros expected<\/li>\n<\/ul>\n<p>Although ASML beat expectations, shares of the firm sank 11% on Wednesday amid a global slump in semiconductor stocks. A Bloomberg report indicated that the Biden administration is considering a broad rule to clamp down on companies exporting their critical chipmaking equipment to China.<\/p>\n<p>ASML sources 49% of its sales from China, highlighting the risk such export curbs would pose to the firm.<\/p>\n<p>ASML previously forecast second-quarter net sales of between 5.7 billion euros and 6.2 billion euros. Net sales fell 9.5% year-on-year, while net income dropped by 18.7%. These declines were narrower than those recorded in the previous quarter.<\/p>\n<p>Net bookings \u2014 a key metric marking orders for ASML machinery \u2014 totaled 5.6 billion euros in the June quarter, rising more than 24% year-on-year.<\/p>\n<p>The Dutch firm is one of the most important semiconductor companies in the world, producing tools known as extreme ultraviolet (EUV) lithography machines, which are required to manufacture the most advanced chips.<\/p>\n<p>ASML has previously called 2024 a \u201ctransition\u201d year, expecting the semiconductor industry to start to recover after a challenging 2023. The company kept its outlook for the full year unchanged. ASML now forecasts third-quarter net sales of between 6.7 billion euros and 7.3 billion euros. Analysts had expected the company to forecast revenue of 7.6 billion euros in the third quarter.<\/p>\n<p>\u201cWhile there are still uncertainties in the market, primarily driven by the macro environment, we expect industry recovery to continue in the second half of the year,\u201d ASML CEO Christophe Fouquet said in a statement. \u201cWe see 2024 as a transition year with continued investments in both capacity ramp and technology. We currently see strong developments in AI, driving most of the industry recovery and growth, ahead of other market segments.\u201d<\/p>\n<p>Some of the world\u2019s biggest chipmakers, such as Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung, are building new semiconductor manufacturing plants in the U.S.<\/p>\n<p>\u201cThe industry expects to be in a cyclical upturn in 2025. As a result, we need to prepare for a number of new fabs that are being built today across the globe. Those fabs will be spread geographically and are strategic for all our customers. They are all scheduled to take our systems,\u201d Fouquet said in a pre-recorded video addressing the company\u2019s earnings.<\/p>\n<p>AI remains a \u201crelatively small part\u201d of ASML revenues, according to Ben Barringer, technology analyst at Quilter Cheviot. \u201cBut that\u2019s going to grow very significantly over the next little while,\u201d he told CNBC\u2019s \u201cSquawk Box Europe.\u201d<\/p>\n<p>ASML also faces geopolitical headwinds. Following pressure from the U.S., the Dutch government last year introduced curbs on the export of advanced semiconductor equipment, amid U.S. pressure to cut Beijing off from key chipmaking tools. The measures also impact ASML\u2019s offerings, although China has never received an ASML EUV machine.<\/p>\n<p>ASML previously said that export restrictions would impact 10% to 15% of its China sales this year.<\/p>\n<p>But China remained a critical part of ASML\u2019s business in the second quarter, accounting for 49% of sales, the same as the previous quarter.<\/p>\n<p>As semiconductor stocks across the board have rallied this year, ASML has also seen its share price rise by 44%.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ASML reported second-quarter earnings and sales that beat forecasts<\/p>\n","protected":false},"author":331,"featured_media":48186,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[9127,4745],"class_list":["post-48185","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech","tag-asml","tag-tech"],"reading_time":"3 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/48185","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/users\/331"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/comments?post=48185"}],"version-history":[{"count":0,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/48185\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media\/48186"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media?parent=48185"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/categories?post=48185"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/tags?post=48185"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}