Chip-Machine Giant ASML Logs Record Orders as AI Spending Booms

Core Viewpoint - Strong client spending for advanced chips indicates robust demand in the AI sector, despite concerns about a potential bubble [1] Group 1: Company Performance - ASML Holding reported record quarterly orders of €13.16 billion (approximately $15.85 billion) in Q4, significantly up from €7.09 billion a year earlier and exceeding analysts' expectations [3] - Orders for ASML's extreme ultraviolet lithography systems reached €7.4 billion, surpassing forecasts and highlighting strong demand for sophisticated semiconductor manufacturing [3] - ASML will no longer disclose quarterly orders, shifting to annual reporting of total backlog, as executives believe quarterly bookings do not accurately reflect business momentum [4] Group 2: Client Spending and Market Trends - Major clients, including Taiwan Semiconductor Manufacturing Co., Samsung Electronics, and Intel, are investing heavily in ASML's equipment to meet the growing demand for advanced semiconductors [2] - TSMC announced a capital expenditure plan of $52 billion to $56 billion for the year, representing a 27% to 37% increase compared to the previous year, which positively impacted ASML's stock and market value [5] - ASML's CEO noted that customers have a more optimistic outlook on medium-term market conditions, driven by expectations of sustained AI-related demand [6] Group 3: Future Projections - For 2026, ASML projects sales between €34 billion and €39 billion, an increase from €32.67 billion in 2025, indicating improved confidence in future prospects [6]