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Investing.com -- ASML (AS:ASML) shares surged over 11.1% on Wednesday after the supplier of computer chip-making equipment beat expectations in the fourth quarter of 2024, reporting record net sales of €9.3 billion.
Revenue came in higher than the company’s previous guidance, with a gross margin of 51.7% and net income of €2.7 billion for the quarter.
The strong results were largely driven by additional system upgrades and the recognition of revenue from two High-NA EUV systems, a next-generation lithography technology essential for advanced semiconductor manufacturing. Additionally, ASML shipped a third High-NA EUV system before the end of the year.
For the full year, ASML posted total net sales of €28.3 billion, slightly above the €27.6 billion reported in 2023, with a steady gross margin of 51.3%.
Net income for the year reached €7.6 billion. While the total number of new lithography systems sold declined from 421 in 2023 to 380 in 2024, growth was supported by strong demand for EUV systems and service-related revenue.
Beyond its revenue performance, the Dutch company saw a surge in net bookings in the fourth quarter, reaching €7.1 billion—more than double the €2.6 billion booked in the previous quarter.
Of these orders, €3 billion were for extreme ultraviolet systems, aided by sustained demand for ASML’s lithography machines.
For the full year, total net bookings amounted to €18.9 billion. While this figure was slightly lower than the €20 billion recorded in 2023, the strong fourth-quarter rebound suggests that semiconductor manufacturers are resuming long-term investment plans after a period of cautious spending.
Looking ahead, the semiconductor manufacturing equipment supplier expects total net sales in 2025 to range between €30 billion and €35 billion, with a gross margin between 51% and 53%.
The company has forecasted first-quarter net sales between €7.5 billion and €8.0 billion, with a gross margin between 52% and 53%.
“Consistent with our view from the last quarter, the growth in artificial intelligence is the key driver for growth in our industry. It has created a shift in the market dynamics that is not benefiting all of our customers equally, which creates both opportunities and risks as reflected in our 2025 revenue range,” said Christophe Fouquet, chief executive at ASML.
While some semiconductor manufacturers are aggressively expanding production capacity to meet AI-driven demand, others are facing a more uncertain outlook, leading to variability in ASML’s 2025 revenue expectations.
However, the company remains well-positioned, particularly as its High-NA EUV systems gain broader adoption in the industry.
ASML also announced a 4.9% increase in its annual dividend, raising it to €6.40 per ordinary share.
An interim dividend of €1.52 per share will be paid on February 19. Together with the interim dividends already paid in 2024, this brings the final dividend proposal to €1.84 per share, pending approval at the company’s General Meeting.