Why ASML Is Advancing Today

Netherlands-based ASML (ASML), which markets equipment used to make computer chips, is climbing 5% today. The company’s bookings came in way ahead of analysts’ average outlook, and its fourth-quarter results beat the average estimates by significant amounts.

ASML asserted that its strong results were driven by powerful demand for AI.

An innovative technician wearing a lab coat manipulating semiconductor chipsets in a modern laboratory.

A Look at ASML’s Q4 Results and Comments

The Dutch firm generated bookings of 7.1 billion euros last quarter, which was much higher than analysts’ average estimate of 3.5 billion euros. Moreover, its EPS came in at 6.85 euros, versus the mean outlook of 6.73 euros. ASML’s top line soared 28% versus the same period a year earlier to 9.26 billion euros. That was 200 million euros above analysts’ average outlook.

For Q1, ASML predicted that its revenue would come in at 7.5 billion euros to 8 billion euros, well above the average estimate of 7.24 billion euros,

“AI is the clear driver. We truly believe that AI is going to bring even more opportunity to this semiconductor industry.” CEO Christophe Fouquet stated. AI ” has created a shift in the market dynamics that is not benefiting all of our customers equally, which creates both opportunities and risks,” he added.

The Recent Price Action of ASML Stock

In the last month, the shares are up 3%, while they have risen 4.5% in the last three months.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.