ASML shines bright in Q2 with bookings rise on AI demand

ASML shines bright in Q2 with bookings rise on AI demand is profiled by BTW Media because public-source evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

• ASML announced better-than-expected earnings for Q2 of 2024 today on strong sales to China and with an increase in new bookings.
• Fouquet said 2024 is embarked as a “transition year” where ASML aims to maintain steady performance in preparation for a robust 2025.

OUR TAKE
As can be seen from ASML’s Q2 financial results, the rapid development of AI technology has not only fuelled the company’s order book growth, but also signalled the huge potential of the semiconductor industry in the coming years. ASML is the only manufacturer of EUV lithography systems, and TSMC and Intel are among ASML’s major customers. The growth in demand from these major customers will provide ASML with short-term financial benefits and lay a solid foundation for its long-term strategic growth.
–Elodie Qian, BTW reporter

What happened

Advanced Semiconductor Material Lithography (ASML), the world’s leading provider of chipmaking equipment, announced better-than-expected earnings for the second quarter of 2024 today on strong sales to China and with an increase in new bookings.

For the quarter ending June 30, ASML reported a net income of €1.6 billion) and a revenue of €6.2 billion ($6.76 billion), surpassing the analyst consensus of €1.41 billion ($1.54 billion) in net income and €6.04 billion ($6.58 billion) in revenue.

New CEO Christophe Fouquet highlighted the pivotal role of AI in driving industry recovery and growth, asserting that it outshines other market segments. “We currently see strong developments in AI, driving most of the industry recovery and growth, ahead of other market segments,” he said in a statement. Fouquet also said 2024 is embarked as a “transition year” where ASML aims to maintain steady performance in preparation for a robust 2025.

Also read: ASML, Imec launch High NA EUV lithography test lab in Veldhoven

Also read: Who is Christophe Fouquet? CEO at ASML

Why it’s important

ASML’s supremacy in the market for lithography systems, which are instrumental in crafting the minuscule circuitry of computer chips, remains unshaken. The company’s new bookings surged to €5.6 billion ($6.11 billion) from €3.6 billion ($3.93 billion) in the first quarter, with the EUV product lines contributing significantly to this leap.

Taiwan Semiconductor Manufacturing Company Limited (TSMCL), a key client of ASML, is responsible for producing chips for tech giants like Nvidia and Apple. “EUV orders increased substantially” in the quarter, Kevin Wang, an analyst from Mihuzo Securities, said. “We attribute this to strong orders from TSMC and Intel.”

While the new bookings exceeded the anticipated €5 billion ($5.45 billion), as estimated by Visible Alpha, ASML’s current results fall short of last year’s impressive €1.94 billion ($2.12 billion) net income on €6.90 billion ($7.53 billion) in revenue. This sets the stage for major construction projects involving TSMC, Intel, and Samsung, which are expected to equip their new facilities with ASML’s equipment in the coming years (2025-2027). It indicates a promising future for the semiconductor industry.