MW ASML stock recovers from DeepSeek turmoil after surge in orders

By Steve Goldstein

ASML CEO says cheaper AI is needed

ASML stock is now back to where it was before the furor over Chinese artificial-intelligence chatbot DeepSeek erupted after the maker of advanced microchip-making equipment reported much stronger-than-expected bookings.

ASML's $(ASML)$ (NL:ASML) fourth-quarter profit rose 32% to EUR2.69 billion ($2.81 billion) as sales rose 28% to EUR9.27 billion. Analysts polled by Visible Alpha expected a profit of EUR2.63 billion on sales of EUR9.04 billion.

Net bookings reached EUR7.1 billion, well ahead of the EUR4 billion estimate. ASML is going to stop reporting that number because the figures can be "lumpy" but will continue to provide a backlog.

The Nasdaq-100 QQQ component reiterated its guidance from October for 2025 sales between EUR30 billion and EUR35 billion, with a gross margin between 51% and 53%.

ASML shares jumped in Amsterdam trade as it now recovered Monday's losses.

ASML President and Chief Executive Officer Christophe Fouquet told reporters that it had not studied DeepSeek in particular. But he said AI is facing two main challenges: cost and power consumption.

"For AI to be everywhere, we need to see major progress on costs and power consumption. Lowering costs also leads to more volume," he said. "So I will say any technology, whatever it is, that will contribute to cost reduction will increase the opportunity."

-Steve Goldstein

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January 29, 2025 05:51 ET (10:51 GMT)

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