Geopolitical risks outweigh solid results.Semiconductor equipment manufacturer ASML (ASML -11.44%) reported a better-than-expected quarter, but the results were overshadowed by increasing geopolitical concerns.Shares of the Dutch tech company traded down 10% as of 10:30 ET on reports the United States is considering tighter restrictions on tech sales to China.Strong quarter, tough questionsASML makes the machines that make semiconductor chips, providing the technology that makes tech trends including artifi ...

Dutch chip production equipment giant ASML (NASDAQ:ASML) and shares of all chipmakers are being dragged down today on a warning about President Joe Biden and his administration’s new export restrictions to China. Geopolitical tensions are also hurting chip stocks after Republican candidate former President Donald Trump said that Taiwan should pay for the U.S. defense of its island.ASML stock is down 10% as of this writing at $959 per share and a market capitalization below $400 billion. However, shares are ...

Financial Data and Key Metrics Changes - Total net sales for Q2 2024 were €6.2 billion, slightly above guidance [7] - Net system sales reached €4.8 billion, comprising €1.5 billion from EUV sales and €3.3 billion from non-EUV sales [7] - Gross margin for the quarter was 51.5%, exceeding guidance due to higher-than-expected Immersion Systems [8] - Net income for Q2 was €1.6 billion, representing 25.3% of total net sales, resulting in an EPS of €4.01 [8] - Free cash flow improved to €386 million, although pressure remains due to customer support and higher inventory levels [9] Business Line Data and Key Metrics Changes - Installed base management sales for Q2 were €1.48 billion, slightly above guidance [8] - Net system bookings totaled €5.6 billion, with €2.5 billion from EUV and €3.1 billion from non-EUV bookings [11] - Logic accounted for 73% of net system bookings, while Memory made up the remaining 27% [11] Market Data and Key Metrics Changes - The backlog at the end of Q2 2024 was approximately €39 billion [11] - The semiconductor industry is showing signs of recovery, with improved lithography tool utilization levels [13] - Demand in the memory segment is primarily driven by DRAM technology, with expected revenue growth compared to 2023 [14] Company Strategy and Development Direction - The company expects EUV revenue growth in 2024, with plans to recognize revenue from a similar number of EUV systems as in 2023 [15] - The company views 2024 as a transition year, focusing on capacity ramp and technology investments for future demand [17] - Long-term growth opportunities are supported by secular growth drivers in semiconductor end markets, including energy transition and AI [18][20] Management's Comments on Operating Environment and Future Outlook - Despite macro uncertainties, the semiconductor industry is trending towards healthier levels [13] - The company anticipates a stronger second half of 2024 compared to the first half, with significant capacity additions expected in 2025 [14][20] - Management remains confident in long-term growth opportunities, despite near-term uncertainties [20] Other Important Information - The company paid a final dividend of €1.75 per ordinary share in Q2 2024, totaling €6.10 per share for 2023 [12] - The company purchased 106,000 shares for a total of €96 million in Q2 2024 [12] Q&A Session Summary Question: Bookings composition and outlook for EUV orders - The majority of bookings (73%) were related to Logic, indicating strong demand from foundry customers, including 2 nanometer orders [24] - No high NA bookings were included in the current quarter [24] Question: Implications of potential trade restrictions on China - The company refrains from commenting on rumors but emphasizes the significant opportunity in the mature semiconductor market [30][31] Question: Expectations for 2 nanometer orders and AI's impact - The company expects a gradual buildup of orders for 2 nanometer technology, with AI driving much of the industry's recovery [36][39] Question: DRAM adoption of EUV layers and future layer count - The company anticipates an increase in EUV layers across nodes, with a consistent trend expected in the foreseeable future [45] Question: Capacity preparation and investments - The company is increasing capacity across the board, including high NA tools, to meet future demand [60] Question: Revenue expectations for the second half of the year - The company expects a progressive buildup of revenue, with around €1 billion in deferred revenue recognized in the second half [79] Question: Customer conversations and emerging shipment outlook - No significant changes in customer conversations were noted, with continued strong demand for immersion tools [88]

Loading...Loading...U.S. stock futures were lower this morning, with the Nasdaq futures falling around 300 points on Wednesday.Shares of ASML Holding N.V.  ASML fell in today's pre-market trading following the release of second-quarter results.The Dutch company reported a second-quarter net income of 1.6 billion euros ($1.75 billion) on revenues of 6.2 billion euros ($6.77 billion), surpassing analysts' expectations of 1.41 billion euros on revenue of 6.04 billion euros, Reuters reported on Wednesday. The n ...

ToplineShares of ASML—Europe’s most valuable tech company and maker of the world’s most advanced chip-making machines—slumped more than 6% early Wednesday following reports that President Joe Biden may be mulling even harsher trade restrictions to further limit China’s ability to manufacture powerful semiconductors.ASML stocks tanked on Wednesday amid reports of more curbs on sales to China.NurPhoto via Getty Images Key FactsAccording to Bloomberg, the Biden administration has floated the idea of using an e ...

Stocks in the AI industry have seen huge gains in recent years. A recent report by PWC estimated the sector could contribute up to $15.7 trillion to global gross domestic product. The three stocks below show the most promise based on their accomplishments and expected product launches in the AI industry.  As investors look to benefit from the rising popularity of AI, these three stocks have emerged as potentially the most lucrative AI stocks to buy now. They are at the forefront of the AI revolution, each m ...

Exhibit 99.3 ASML - Summary US GAAP Consolidated Statements of Operations Three months ended, Six months ended, | --- | --- | --- | --- | --- | |---------------------------------------------------|---------|---------|---------|---------| | | July 2, | Jun 30, | July 2, | Jun 30, | | (unaudited, in millions €, except per share data) | 2023 | 2024 | 2023 | 2024 | | --- | --- | --- | --- | --- | |------------------------------------|---------|---------|----------|----------| | Net system sales | 5,606.1 | 4,76 ...

ASML logo is seen at the headquarters in Veldhoven, Netherlands, June 16, 2023.ASML reported second-quarter earnings and sales that beat forecasts as it continues to see a recovery in demand for its machines that are required to make the world's most advanced chips. Here's how ASML did versus LSEG consensus estimates:Net sales: 6.24 billion euros ($6.8 billion) versus 6.03 billion euros expectedNet profit: 1.58 billion euros versus 1.43 billion euros expectedASML previously forecast second-quarter net sales ...

ASML reports €6.2 billion total net sales and €1.6 billion net income in Q2 2024ASML continues to expect 2024 total net sales to be similar to 2023, supported by a strong second half year VELDHOVEN, the Netherlands, July 17, 2024 – Today, ASML Holding NV (ASML) has published its 2024 second-quarter results. Q2 total net sales of €6.2 billion, gross margin of 51.5%, net income of €1.6 billionQuarterly net bookings in Q2 of €5.6 billion2 of which €2.5 billion is EUVASML expects Q3 2024 total net sales betwe ...

ASML reports €6.2 billion total net sales and €1.6 billion net income in Q2 2024ASML continues to expect 2024 total net sales to be similar to 2023, supported by a strong second half year VELDHOVEN, the Netherlands, July 17, 2024 – Today, ASML Holding NV (ASML) has published its 2024 second-quarter results. Q2 total net sales of €6.2 billion, gross margin of 51.5%, net income of €1.6 billionQuarterly net bookings in Q2 of €5.6 billion2 of which €2.5 billion is EUVASML expects Q3 2024 total net sales betwe ...