Staff Report
ASML Holding, the Dutch company that holds a global monopoly on the extreme ultraviolet lithography machines needed to manufacture the most advanced semiconductor chips, reported third-quarter profits that comfortably beat Wall Street forecasts, lifting European shares and US futures in early trading.
ASML posted earnings per share of $14.65, well above the $12.13 analysts had expected, a surprise of more than 20%. The company said demand remains strong enough that customers are already placing orders stretching out to 2030.
The results helped push European markets higher, with the Stoxx 600 up 0.48% and London’s FTSE 100 gaining 0.22% in early trading, while S&P 500 futures rose 0.21%, building on a flat close for the US benchmark the prior session.
ASML raised its fourth-quarter sales guidance and said it is unlikely to have enough manufacturing capacity to meet the full extent of customer demand. For the full year, the company now expects revenue between €44 billion and €45 billion, with a gross margin of roughly 56%.
The results reinforce ASML's position at the center of the artificial intelligence buildout, given that its lithography machines are the only tools capable of producing the most advanced chips used in AI accelerators, a bottleneck that continues to give the company significant pricing power and visibility into demand years in advance of production.
