ASML, the leading supplier of chip-making equipment, anticipates benefiting from increased AI investments despite a projected drop in Chinese demand next year. ASML stock rose 2% on Wednesday. CEO Christophe Fouquet highlighted the positive impact of AI investments on logic and memory chips. Shares surged 37% since September, rising 3.2% to 873.80 euros.

Net bookings for the third quarter totaled 5.40 billion euros, surpassing analysts’ estimates. ASML foresees a significant decline in Chinese sales next year after comprising nearly half of company sales in 2024. U.S. export restrictions limit ASML’s sales of advanced tools to China, impacting future sales projections. ASML predicts flat sales in 2026 from 32.5 billion euros in 2025.

JPMorgan analysts expect ASML to overcome the bearish outlook for 2026 and focus on growth opportunities in 2027. ASML’s lithography tools are crucial for chip production and are sold to major players like TSMC, Nvidia, SMIC, Intel, Samsung, SK Hynix, and Micron. The company reported a third-quarter net income of 2.12 billion euros, in line with analyst expectations.

Read more at Yahoo Finance: Global AI rush helps ASML beat orders estimates, but China outlook dims