AMSTERDAM (Reuters) — ASML (ASML), the top equipment supplier to computer chip makers, is expected to report an influx of new orders when its new boss delivers second-quarter results on Wednesday, as customers expand capacity to meet booming demand for AI chips. The AI chip boom has spurred ASML’s customers to expand their manufacturing capabilities.
Another focus will be whether Chinese firms have continued heavy purchasing of equipment used to make older generations of chips such as those used in electric cars, a concern for Western policymakers who have curbed buying of more advanced technology. #AIchipboom
Analysts say the company may upgrade guidance as key makers of cutting-edge chips – including Taiwan’s TSMC (TSM), which manufactures chips for Nvidia (NVDA) and Apple (AAPL), and reports earnings on Thursday – may increase and accelerate equipment purchases.
ASML dominates the market for lithography systems, complex tools that use lasers to help create the tiny circuitry of computer chips. It is the only maker of lithography systems using extreme ultraviolet (EUV) wavelengths, needed by TSMC to make the most complex chips for smart phones and AI chips. #AIchipboom
“We expect ASML’s order received value to reach close to 5 billion euros in the second quarter, higher than consensus estimates”, Mihuzo analyst Kevin Wang said, with strong orders from TSMC of ASML’s EUV product line.
ASML, worth about 400 billion euros ($437 billion), has described 2024 as a “transition” year when business will be flat before rebounding strongly in 2025, driven by demand for its most advanced tools.
Investors and industry watchers are closely monitoring ASML’s quarterly performance amidst the AI chip boom. The company’s ability to meet the heightened demand for its cutting-edge chip-making equipment will likely be a key driver of its financial performance in the coming quarters.
