ASML (ASML), a Dutch firm that is one of the most important semiconductor equipment makers in the world, has announced a 30% increase in its full-year revenue due to demand for artificial intelligence (A.I.) microchips.
Owing to the global demand for microchips and semiconductors that power A.I. models, ASML posted fourth quarter earnings that beat analyst expectations on both the top and bottom lines.
ASML reported revenue of 7.2 billion euros ($7.82 billion U.S.) versus 6.90 billion euros that was expected on Wall Street. Sales were up 12.5% year-over-year.
The company’s profit totaled 2.05 billion euros versus 1.86 billion euros that was expected.
For all of last year, ASML reported 27.6 billion euros in revenue, up 30% from a year ago.
Based in Holland, ASML makes a machine called an extreme ultraviolet lithography that is required in the manufacturing of the world’s most advanced microchips.
However, despite the earnings beat, ASML said that it expects first-quarter net sales of between 5.0 billion euros and 5.5 billion euros, which is inline with forecasts.
On an earnings call with analysts and media, ASML’s management team guided for 2024 to be a stagnant year, with revenue similar to 2023. Although they acknowledged that their guidance was deliberately conservative.
The company said that export restrictions would impact 10% to 15% of its sales in China going forward.
The stock of ASML has gained 16% over the past year to trade at $778.39 U.S. per share. The share price is up 6% in premarket trading today (Jan. 24) on news of the strong Q4 results.