17 July 2024
If you are covering ASML’s latest financial results, please find below a comment from Ben Barringer, technology analyst at Quilter Cheviot:
“The artificial intelligence boom continues to make hay as ASML posted a solid set of numbers. Profits and revenues were up strongly and in line with expectations, and while guidance remained unchanged, it is the order book that investors will be pleased with.
“In recent months as demand has peaked and troughed following the pandemic and the supply chain issues that resulted, orders have been volatile. However, ASML is taking advantage of the technology race in AI to secure its order book well into 2025 and continue its strong market position. The context is important too as ASML has a significant backlog and thus demand will be sustained for a considerable period of time. While one can argue the chips industry is somewhat of a bubble right now, the driving factors remains very alive and present and it is companies such as ASML that will meet that demand.
“The one question mark hanging over everything is China and how successful it will be for the company going forward. For now, it appears sales are holding up, but how long this remains the case is uncertain. China is trying to build its own semiconductor industry and become less reliant on developed markets. This year and next will likely remain positive for the likes of ASML, but beyond that is very difficult to predict right now.
“That said, with a strong demand profile, ASML will continue to benefit from this AI revolution for the coming years and as such investors will continue to put faith in the company.”
