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Investing.com - Shares in Nvidia (NASDAQ:NVDA) hovered around the flatline in premarket U.S. trading on Wednesday after Dutch semiconductor group ASML (AS:ASML) posted strong fourth-quarter bookings thanks to artificial intelligence-fueled demand for its chip equipment.
The solid figures were tipped to help stabilize sentiment around a boom in enthusiasm around AI, which was dented earlier in the week by the emergence of a low-cost large language model from Chinese start-up DeepSeek. The development raised questions around the necessity of massive AI spending plans being put forward by some of Silicon Valley’s biggest companies.
ASML is a major supplier of gear to Taiwan’s TSMC, which in turn manufacturers most chips designed by Nvidia.
ASML’s stock price surged by over 11% in European trading after the group logged record net sales of 9.3 billion euros. Revenue came in higher than the company’s previous guidance, with a gross margin of 51.7% and net income of 2.7 billion euros for the quarter.
Meanwhile, net bookings spiked in the period, reaching €7.1 billion -- more than double the €2.6 billion booked in the previous quarter.
The 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 reported 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.
Looking ahead, the semiconductor manufacturing equipment supplier expects total net sales in 2025 to range between 30 billion euros and 35 billion euros, with a gross margin between 51% 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.