By Mauro Orru

ASML Holding posted better-than-expected orders of its chip-making equipment for the third quarter as demand for sophisticated semiconductors to power artificial intelligence shows no sign of abating.

The Dutch group reported orders of 5.40 billion euros ($6.27 billion), up from 2.63 billion euros a year earlier and above analysts' forecast of nearly 5.36 billion euros, according to consensus estimates by Visible Alpha.

The company, which sells chip-making tools to the likes of Intel and Samsung Electronics, booked 3.6 billion euros in orders for its extreme ultraviolet lithography machines, high-end systems that enable semiconductor producers to print the most intricate layers on chips. Analysts had forecast 2.22 billion euros in EUV orders.

"We have seen continued positive momentum around investments in AI, and have also seen this extending to more customers," Chief Executive Christophe Fouquet said.

The group has been a key beneficiary of the AI boom, while demand for machines that make less sophisticated chips for cars, smartphones and industrial equipment has been weaker.

Shares are up nearly 25% so far this year, lifted in recent weeks by a string of partnership announcements from major tech companies and some long-time clients.

Nvidia and Intel agreed to jointly develop data-center and personal-computing products. Samsung Electronics and OpenAI reached an initial agreement to establish AI infrastructure, while the ChatGPT maker also struck a multibillion-dollar deal with Advanced Micro Devices to collaborate on AI data centers.

ASML investors have welcomed these partnerships amid expectations that companies will need to purchase more semiconductor-making tools to produce the sophisticated chips needed to power AI.

Shares also got a boost after the European Union reached a trade deal with the U.S. that set a 15% tariff ceiling for semiconductor exports. ASML spooked markets ahead of the deal in July, when it said it could no longer guarantee growth next year because of tariff-related uncertainty.

Fouquet said Wednesday that sales next year aren't expected to be below the 2025 figure and that ASML would provide clearer guidance in January.

While the EU-U.S. agreement brought much-needed stability to transatlantic trade, ASML remains exposed to the volatile relationship between the U.S. and China, a key market that last year accounted for about 36% of its sales, according to the company's annual report.

President Trump said last week that he would impose a 100% additional tariff on China as well as new export controls on critical software products after Beijing placed restrictions on the export of rare-earth minerals.

ASML could be caught in the crossfire if China were to impose retaliatory tariffs on U.S.-made products. The company has manufacturing hubs in Wilton, Connecticut, and San Diego, California.

Fouquet said he expects customer demand in China and ASML sales in the country to decline significantly next year compared to 2024 and 2025.

The executive said in July that ASML's exposure to China would decrease to over 25% of sales this year, still a sizable chunk of its top line when considering that the company's most advanced machines are subject to export controls that restrict their sale in China.

The group confirmed its guidance for 2025, projecting sales growth of around 15% on year to roughly 32.50 billion euros and a gross margin of about 52%.

ASML reported sales of 7.52 billion euros for the quarter, up from 7.47 billion euros a year earlier. The figure is below analysts' forecast but in line with company guidance.

Net profit grew to nearly 2.13 billion euros from 2.08 billion euros a year earlier, beating market expectations. Gross profit--a closely watched metric for companies operating in the semiconductor industry--came in at 3.88 billion euros, generating a 51.6% margin that beat consensus and touched the higher end of company guidance.

For the current quarter, the company expects sales between 9.2 billion euros and 9.8 billion euros, with a gross margin between 51% and 53%.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

October 15, 2025 01:44 ET (05:44 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.