ASML beats forecasts with Q2 earnings of 6.24 billion euros, driven by demand for AI chips.

From CNBC: 2024-07-17 01:57:29

ASML reported second-quarter earnings of 6.24 billion euros, beating forecasts, driven by demand for AI chips. Net profit was 1.58 billion euros. Net sales fell 9.5% year-on-year, with net income down by 18.7%. ASML forecast third-quarter net sales of 6.7 billion to 7.3 billion euros for the “transition” year of 2024. China accounted for 49% of sales despite export restrictions.

ASML, a key semiconductor company, produces EUV lithography machines crucial for chip manufacturing. Despite market uncertainties, CEO Christophe Fouquet expects industry recovery in the second half of the year. Revenue from AI, though currently small, is expected to grow significantly. ASML shares have risen 44% as semiconductor stocks rally.

Net bookings for ASML machinery in the June quarter totaled 5.6 billion euros, up over 24% year-on-year. The company forecasts continuous investments in capacity and technology for 2024. ASML faces geopolitical challenges following export restrictions due to U.S. pressure, impacting 10-15% of China sales. New semiconductor fabs being built globally signal industry recovery.

Industry giants like TSMC and Samsung, are constructing new semiconductor plants, anticipating a cyclical upturn in 2025. ASML remains optimistic about industry growth, driven by AI advancements. Despite geopolitical tensions and export restrictions, the Dutch firm’s outlook for the full year remains unchanged as it navigates through market uncertainties.



Read more at CNBC:: ASML earnings report Q2 2024