ASML Stock Soars 7% After Strong Q4 Earnings, CEO Highlights AI Demand

ASML's shares surged after the company reported strong fourth-quarter earnings, with net sales of €9.26 billion and earnings per share of €6.85, both exceeding analyst expectations. CEO Christophe Fouquet emphasized that advancements in AI, despite concerns over competition from China's DeepSeek, are driving demand for ASML's extreme ultraviolet (EUV) lithography machines, essential for producing advanced AI chips. The company also provided an optimistic forecast for Q1 2025, projecting revenue between €7.5 billion and €8 billion, above consensus estimates. Although ASML's recent stock performance has been volatile due to market reactions to AI developments, the strong order book and earnings suggest a potential stabilization in demand. However, challenges remain, particularly regarding growth prospects in 2025 and geopolitical tensions affecting the semiconductor supply chain. Analysts remain cautiously optimistic, noting that while ASML's immediate outlook is positive, long-term growth concerns persist.