ASML Impresses Investors with Surge in New Orders

ASML, the prominent Dutch chip machine manufacturer, has recently impressed investors with its surge in new orders. The company reported significant growth in its order book and projects increased revenue in 2026, primarily driven by the rising demand for AI chips.

Strong Demand Propels ASML’s Growth

The anticipation surrounding ASML’s third-quarter results was palpable. Investors were eager to gauge the company’s performance after concerns emerged following the second-quarter figures released on July 16. The improved sentiment in the semiconductor sector has largely been influenced by major investments in artificial intelligence technologies.

Key Financial Highlights

• Quarterly Revenue: €7.5 billion, aligning with ASML’s forecast of €7.4 to €7.9 billion.
• Gross Margin: 51.6%, surpassing expectations of 50-52%.
• New Orders: €5.4 billion in the latest quarter, showing a notable increase from €2.6 billion a year prior.
• 2025 Revenue Projection: €32.5 billion, indicating a 15% year-on-year growth.

This growth is attributed to a higher-than-expected demand for machinery essential for AI-related product manufacturing. The surge in new orders highlights ASML’s critical role in the chip production landscape, especially amidst escalating investments in AI technology worldwide.

Future Outlook and Shareholder Returns

Looking ahead, ASML remains optimistic about its revenue growth in 2026. The firm anticipates compensating for a dip in demand from China with the ongoing global investments in artificial intelligence.

In terms of shareholder returns, ASML has been active in stock buybacks. In the third quarter alone, the company repurchased €148 million worth of shares. Overall, it has utilized €5.9 billion under its current buyback program, which runs until the end of 2025.

Investment Recommendations

Experts maintain a “buy” recommendation for ASML. The company has not altered its medium-term goals, forecasting a potential revenue of €55 billion by 2030, with gross margins remaining robust. With ongoing stock buybacks, ASML could achieve earnings per share of €55 by 2030, suggesting a target share price of €1,485 based on a valuation of 27 times earnings.

In light of its performance and future prospects, ASML continues to be a strong player in the semiconductor industry, with substantial growth opportunities ahead.