ASML's CEO Says AI Demand Is Accelerating. Is the Stock a Buy for 2026?

Core Viewpoint - The AI boom is positively impacting the semiconductor industry, with ASML experiencing a significant recovery in stock performance and bookings growth, indicating a potential turnaround in the semiconductor cycle [1][2]. Group 1: Company Performance - ASML's revenue increased by 6.6% in the latest quarter, reaching 7.58 billion euros, while earnings per share rose by 7.3% to 7.34 euros [4]. - The company recorded 13.2 billion euros in bookings for the quarter, more than double the amount from the same quarter a year ago, and total bookings for the year increased by 48% to 28 billion euros [5]. - ASML's guidance for 2026 anticipates revenue between 34 billion and 39 billion euros, suggesting a growth rate of 14.7% at the midpoint [5]. Group 2: Market Position and Strategy - ASML is the sole manufacturer of extreme ultraviolet (EUV) lithography machines, which are critical for producing advanced semiconductor chips, positioning the company centrally within the semiconductor industry [1][7]. - The company plans to cut 1,700 jobs to streamline operations and enhance focus on engineering and innovation [6]. - EUV sales as a percentage of total systems are projected to increase from 38% in 2024 to 48% in 2025, indicating a growing demand for these advanced machines [7].