ASML Sees Sales Growth Amid AI Boom

By Toby Sterling and Nathan Vifflin

AMSTERDAM (Reuters) – Europe's largest tech firm, computer chip equipment maker ASML (AS:ASML), expects sales to grow by 8% to 14% over the next five years fueled by demand for AI tools.

The guidance, deemed reassuring by analysts, was announced ahead of the company's investor day in Veldhoven, Netherlands, where it is expected to address sales prospects to China following Donald Trump's presidency.

Chief Executive Christophe Fouquet stated: "We expect that our ability to scale EUV technology into the next decade … positions ASML well to contribute to, and leverage the artificial intelligence opportunity."

He added that this would enable significant revenue and profitability growth.

ASML projected revenues of 44 billion euros to 60 billion euros ($46.4 billion to $63.3 billion) by 2030, with gross margins remaining at 56% to 60%, consistent with previous long-term guidance from 2022.

Analysts found this outlook encouraging, especially after third-quarter earnings in October significantly missed expectations, mainly due to delayed orders from customers like Intel (NASDAQ:INTC) and Samsung (KS:005930) amid a broader slowdown in non-AI chip markets.

Kevin Wang from Mizuho (NYSE:MFG) Securities commented, "The first glance looks positive," noting that some investors anticipated a downward revision of guidance. "Management remains bullish on ASML’s sales and profitability growth."

Major chipmakers like Taiwan's TSMC utilize ASML's EUV tools to manufacture advanced chip circuitry.

However, ASML is currently restricted from selling most advanced EUV and DUV lithography equipment in China due to U.S. and Dutch government restrictions that began during Trump's administration.

In October, ASML highlighted that it expects sales in China to decline to 20% of total sales, down from over 40% over the past six quarters, although it continues selling relatively older "dry" DUV products in China without restrictions.

($1=0.9478 euros)