Nvidia stock trades lower, ASML rises after fourth-quarter bookings top analysts’ forecasts, and Wall Street awaits quarterly earnings Wednesday from Tesla, Microsoft, and Meta Platforms.
Dutch chip equipment maker ASML Holding NV beat the fourth quarter earnings estimates and posted record net sales on an annual and sequential basis, on Wednesday. The company also reduced its Chinese market share in Q4.
ASML shares jump 9% as strong chip orders ease AI spending fears. Traders eye semiconductor stocks as demand for high-end chips remains resilient.
ASML's valuation reflects potential for substantial growth and profitability, making it attractive at current levels. Click here to find out why ASML stock is a Buy.
Looking ahead, the company provided an optimistic outlook for the first quarter (Q1), projecting revenues between €7.5 billion and €8.0 billion, which is above the FactSet Consensus of €7.21 billion. The gross margin for Q1 is expected to be between 52% and 53%.
Investors will seek reassurance that ASML's AI-dependent growth outlook for 2025 is secure despite a selloff sparked by China's DeepSeek, as the biggest supplier of equipment used to make computer chips ASML reports earnings on Wednesday.
Without addressing the specifics of DeepSeek’s model, ASML CEO Christophe Fouquet told CNBC he sees no sign of a slowdown in demand for AI chips.
ASML Holding (NASDAQ:ASML) is rocketing higher on strong earnings. Up about $38 a share, the Dutch semiconductor giant reported a substantial jump in fourth quarter net bookings, which tells us demand for its chipmaking tools is still strong.
Overall, ASML Holding N.V. reported a very strong Q4 and set the stage for a promising fiscal '25 performance. Learn more about ASML stock here.
DeepSeek’s much-hyped low-cost AI revolution could be a positive for companies supplying the tools for furthering the technology’s adoption,
Nvidia’s Blackwell chip – the world’s most powerful AI chip to date – costs around US$40,000 per unit, and AI companies often need tens of thousands of them. But up to now, AI companies haven’t really struggled to attract the necessary investment, even if the sums are huge. DeepSeek might change all this.