ASML Stock: Record Orders Drive 9% Share Surge

ASML, the Dutch semiconductor equipment manufacturer, demonstrated exceptional performance in the fourth quarter of 2023, posting record revenue of 9.3 billion euros, up significantly from 7.5 billion euros in the previous quarter. The company's new orders reached an impressive 7.1 billion euros, more than doubling analyst expectations, with approximately three billion euros attributed to advanced EUV lithography systems. The quarter also saw improved profitability, with gross margins climbing to 51.7% and net profit reaching 2.7 billion euros. Despite ongoing export restrictions to China, the region still contributed 27% to total revenue, though this is expected to decrease to about 20% in 2024.

Market Impact and Future Outlook

The strong quarterly results triggered an immediate market response, with ASML shares surging nearly 9% on Wednesday, completely recovering from recent losses sparked by concerns over Chinese AI competition. This positive momentum extended throughout the European technology sector, which gained 3.8%. Looking ahead, ASML projects first-quarter 2024 revenue between 7.5 and 8 billion euros, with gross margins expected to improve to 52-53%. The company maintains its 2025 forecast of net revenue between 30 and 35 billion euros, despite challenges from tightened export restrictions.