Why ASML Stock Was Climbing This Week

Core Viewpoint - ASML's third-quarter earnings report exceeded expectations, contributing to a rise in its stock price, supported by a broader tech and AI market upswing and easing trade tensions with China [1][3]. Financial Performance - Revenue for the third quarter increased by 0.7% year over year, although system sales declined by 6%, with services being the primary driver of revenue growth [3]. - Earnings per share rose from 5.28 euros to 5.48 euros, aligning with the company's guidance [4]. - The company forecasts fourth-quarter revenue between 9.2 billion euros and 9.8 billion euros, marking its strongest seasonal quarter [5]. Future Outlook - ASML anticipates revenue growth in 2025 and continues to project a 15% revenue increase for 2025, with a gross margin of 52% [5]. - Management noted ongoing positive momentum in AI and the successful shipment of its first product with advanced packaging, indicating potential for future growth [4]. - The company maintains a strong competitive advantage as the sole manufacturer of EUV lithography machines, which is expected to lead to growth, particularly if the AI boom persists [6].