From Fortune:

ASML Holding NV surges to a record high amidst high demand for its sophisticated gear and its key position in the artificial intelligence boom.

Strong earnings signal a resurgence in orders, key to ASML’s record booking in the fourth quarter.

Recovery in memory chipmakers’ spending commitments helps ASML’s resurgence. High-performance memory chips are key in the semiconductor industry and is driving demand for ASML.

The races to produce 2-nanometer chips ramps up as ASML’s machines are required in new chipmaking facilities set to open.

ASML’s revival in orders comes amid a race to produce 2-nanometer chips, as next-generation technology will make AI algorithms compute even faster.

ASML shares appear expensive at 40 times next year’s earnings but would come down to historical levels when 2025 earnings are taken into consideration.

One concern for ASML’s future is tied to Chinese chipmakers, which rushed to ship in lithography tools ahead of export restrictions.

2024 is set to be a year of limited growth for ASML. The firm said it’s seeing positive signs in the chip industry, but the shape and pace of a recovery is unclear.



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