asml's mixed signals: strong results meet stock scrutiny
amsterdam, Wednesday, 6 August 2025.
asml holding, a pivotal semiconductor equipment supplier, faces market skepticism despite exceeding expectations in its second quarter 2025 results. the company reported net sales of eur7.7 billion and gross margins of 53.7%. tsmc’s positive outlook adds another layer to the analysis. analysts are now questioning whether this presents a buying opportunity, especially given asml’s vital role and its impressive growth with a compound annual growth rate of 17% from 2014 to 2024.
asml’s growth trajectory
asml has demonstrated significant financial growth over the past decade [2]. Between 2014 and 2024, the company’s revenue experienced a compound annual growth rate of 17% [2]. Furthermore, its gross margin expanded from 44.3% to 51.3% during the same period [2]. asml’s earnings per share also rose at a compound annual growth rate of 22%, showcasing strong profitability [2]. This growth has been reflected in its stock performance, which rallied 610% over the past 10 years [2].
recent financial performance
while asml has shown impressive long-term growth, its recent performance presents a mixed picture [2]. in 2022, the company’s net sales rose by 14%, followed by a 30% increase in 2023 [2]. however, in 2024, net sales growth slowed to 3%, with the gross margin remaining flat and earnings per share dipping by 3% [2]. the first quarter of 2025 saw a resurgence, with net sales growth of 46.4% and earnings per share growth of 92.9% [2]. this momentum continued into the first half of 2025, driven by ai tailwinds and upgrades to high-na euv systems [2].
q2 2025 results and future outlook
asml’s q2 2025 results revealed a 23.2% increase in net sales growth compared to the same period last year [2]. the gross margin stood at 53.7%, slightly below the 54% recorded in q1 2025 but higher than the 51.5% in q2 2024 [2]. earnings per share growth was 47.1% [2]. looking ahead, asml anticipates net sales to increase by 15% for the full year, with a gross margin of 52% [2]. analysts project revenue and earnings per share to grow by 14% and 24% respectively [2]. from 2024 to 2027, revenue and earnings per share are expected to increase at a compound annual growth rate of 10% and 17% respectively [2].
market dynamics and analyst perspective
asml’s growth has been tempered by factors such as initial growth in the ai market, slower expansion in non-ai sectors, and restrictions on shipping duv systems to china [2]. despite these challenges, the company’s dominant position in lithography systems, particularly its euv technology, underpins its long-term potential [2]. leo sun suggests accumulating asml shares, viewing market hesitation as an opportunity [2]. globalfoundries (gf) is making significant investments in chip manufacturing and ai capabilities, which could indirectly benefit asml through increased demand for semiconductor equipment [7].