Shares in Dutch chip giant ASML soar on bullish orders

Core Viewpoint - ASML's shares surged despite a decline in annual net profit, driven by better-than-expected orders for its advanced chip-making machines [1][2]. Financial Performance - ASML reported total sales of 28.3 billion euros for the year, slightly exceeding its forecast of 28 billion euros, marking it as a record year [3]. - The company's after-tax profit for 2024 was 7.6 billion euros, down from 7.8 billion euros in 2023 [4]. - In the fourth quarter, ASML's sales reached 9.3 billion euros, surpassing previous guidance of 8.8 to 9.2 billion euros, with a net profit of 2.7 billion euros compared to 2.1 billion euros in the third quarter of the previous year [10]. Market Dynamics - The growth in artificial intelligence is identified as a key driver for the semiconductor industry, with ASML's CEO emphasizing the shift in market dynamics [3][9]. - ASML maintained its annual sales forecast for 2025 at 30-35 billion euros, reflecting the impact of export controls [4][8]. Export Controls and Geopolitical Context - The company is navigating the complexities of US-led export controls aimed at curbing high-tech exports to China, which has been described as "technological terrorism" by Beijing [5][8]. - The Dutch government has tightened export controls on advanced semiconductor production equipment, but ASML stated that these measures would have "no additional impact" on its business [7]. Future Outlook - ASML has identified 2024 as a transition year, anticipating significant growth in 2025, although the recovery is described as slower than expected [10]. - The long-term sales guidance remains unchanged at 44 to 60 billion euros for 2030, with optimism pinned on the expanding AI market [9].