asml's euv machine orders reach unprecedented levels
Veldhoven, Monday, 20 January 2025.
ASML, a leader in semiconductor manufacturing equipment, has reported a record-breaking number of orders for its EUV lithography machines in 2025. This surge in demand underscores the pivotal role ASML plays in the global chip manufacturing industry. With EUV technology being essential for producing next-generation semiconductors, the company is poised for expansive growth. This remarkable demand suggests a promising outlook for ASML’s future performance in the stock market. Analysts emphasize ASML’s existing monopoly in EUV technology as a key driver of its success. Investors are optimistic about the company’s strategic position and are considering long-term positions, expecting further growth and profitability in the upcoming years. This trend sets a positive trajectory for ASML, reinforcing its dominance and market leadership in advanced semiconductor technologies.
Market impact and stock performance
Despite ASML’s strong market position, recent trading data shows volatility. The company experienced a 3.9% decline in pre-market trading, following a significant 16.26% drop after an early release of its third-quarter earnings [7]. However, market experts maintain a positive long-term outlook, citing ASML’s monopoly in EUV lithography technology as a crucial factor for advanced chip manufacturing [1].
Revenue projections and market dynamics
ASML’s Chief Financial Officer Roger Dassen projects a shift in revenue composition, with China’s contribution expected to normalize at 20% next year, down from 49% in the June quarter [7]. This realignment comes amid broader industry developments, including TSMC’s successful delivery of NVIDIA AI servers [4] and increasing demand for advanced semiconductor manufacturing capabilities [1].
Industry analysis and future outlook
According to Gene Munster from Deepwater Asset Management, recent market reactions may be overblown, noting that only about 10% of ASML’s revenue is tied to AI demand [7]. The company’s EUV lithography machines remain essential for AI chip production [1]. Industry experts suggest that ASML’s technological leadership position remains unchallenged, with competing technologies still years away from matching their capabilities [5].