ASML Stock Jumps Pre-Market After Q4 Earnings Beat: Retail Cheers CEO’s Outlook On AI

U.S.-listed shares of ASML Holding NV (ASML) jumped nearly 6% in pre-market trade on Wednesday after the company reported an earnings beat, erasing some of the losses after the market went into a tailspin about DeepSeek’s low-cost AI model earlier this week.

ASML posted earnings per share of $7.14, topping analysts’ expectations of $7.07 for the fourth quarter of fiscal 2024, according to Koyin data.

Revenue rose 24% year-over-year to $9.6 billion, slightly above the $9.5 billion consensus estimate. 

China-related sales continued to normalize, dropping from 47% of Q3 net sales to 27% in Q4. Management expects this to stabilize at around 20% of net system sales in 2025.

ASML sold 132 lithography systems in Q4, exceeding estimates of 121 units, marking a 6.5% year-over-year increase. This included 14 extreme ultraviolet (EUV) systems, up from 11 in Q3.

Gross profit reached $5 billion, a 28.7% increase from the same quarter last year, while net profit surged 31.5% to $2.8 billion.

“The growth in artificial intelligence is the key driver for growth in our industry,” said CEO Christophe Fouquet during the earnings call.

“It has created a shift in the market dynamics that isn’t benefiting all of our customers equally, which creates both opportunities and risks as reflected in our 2025 revenue range,” he added.

The chip equipment maker reiterated its 2025 sales guidance of $31 billion to $36 billion. 

For the current quarter, it expects revenue between $7.81 billion and $8.33 billion, aligning with consensus estimates of $7.8 billion, according to Koyfin.

The company anticipates sales to be in a range of $7.81 billion to $8.33 billion for the ongoing quarter, compared with the current consensus on Koyfin for $7.8 billion.

ASML Sentiment and Message Volume on Jan.29 as of 7:20 a.m. ET | Source: Stocktwits

On Stocktwits, retail sentiment around ASML improved to ‘extremely bullish’ from ‘bullish’ a day ago, while chatter remained at ‘extremely high’ levels amid earnings.

One user noted that ASML’s rally had lifted other semiconductor stocks, except Nvidia (NVDA), which had already surged 8% on Tuesday.

One investor dismissed fears over DeepSeek’s AI advancements, arguing that ASML success is not dependent on who "wins the AI race."

ASML’s CEO also downplayed competitive risks during the earnings call, saying that any technology reducing AI costs could drive higher semiconductor demand, benefiting chipmakers in the long run.

He also highlighted that the company sold its first High-NA EUV tools in Q4 and that demand remains strong, with customer discussions focused on scaling up production.

ASML shares have lost over 20% in the past year and fallen more than 3% year-to-date.

($1 = 0.96 euro)

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