ASML Surges on Record Bookings, Navigates AI-Driven Demand
ASML Holding NV saw its stock reach a record high following a surge in fourth-quarter bookings that significantly exceeded analyst expectations. The Dutch semiconductor equipment maker announced the results on , alongside plans for job cuts aimed at improving efficiency.
Bookings for the quarter totaled EUR13.2 billion (US$15.8 billion or $19.9 billion), far surpassing the average analyst estimate of EUR6.85 billion. The strong performance is attributed to increased demand fueled by artificial intelligence (AI), according to ASML CEO Christophe Fouquet. “The last three months have brought a lot of clarity” about what AI means for the semiconductor industry, Fouquet said in an interview with Bloomberg TV. “Our customers start to believe that this AI demand is sustainable and therefore they are moving to building capacity, and they are moving very aggressively.”
As of , ASML shares had gained 4.5% to EUR1,272.60 in Amsterdam trading, extending their year-to-date gain to 38%. The stock reached an intraday high during the session. The company’s market capitalization surpassed $500 billion on , making it the third European company to achieve this milestone.
Despite the positive bookings report, ASML announced plans to cut approximately 1,700 jobs, roughly 4% of its workforce, primarily in the Netherlands and the United States. This move is intended to streamline the organization and boost efficiency.
China represented ASML’s largest market in the fourth quarter, accounting for 36% of net system sales. The company is Europe’s most valuable, and its success is closely tied to the performance of its customers.
The positive momentum extended to US peers, with Lam Research Corp, Applied Materials Inc, and KLA Corp all experiencing gains in pre-market trading. Japanese suppliers to ASML, including Tokyo Electron Ltd, also posted significant increases. Applied Materials gained 8.56 percent amid the broader semiconductor equipment surge on .
Net income for the fourth quarter reached EUR2.84 billion. Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) also recently reported strong earnings, reinforcing the positive trend in the semiconductor industry. TSMC’s earnings beat expectations, with net sales of $33.73 billion, up 20.5% year-over-year, and net income rising 35% to $16.31 billion. TSMC projected first-quarter 2026 revenue of $34.60 billion to $35.80 billion.
Samsung Electronics is also anticipating a record operating profit, driven by surging chip earnings. The company’s semiconductor business saw a sharp increase in earnings due to strong demand.
Investors, however, continue to press ASML executives for further insight into the company’s outlook, even in light of the record orders. The broader semiconductor ecosystem is benefiting from the increased investment and demand, particularly as major technology companies continue to aggressively pursue AI initiatives.
