10 AI News Investors Probably Missed

3. ASML Holding N.V. (NASDAQ:ASML)

Number of Hedge Fund Holders: 64

ASML Holding N.V. (NASDAQ:ASML) designs, manufactures, and services advanced semiconductor equipment, including lithography, metrology, and inspection systems, serving global chipmakers.

On January 29, Bernstein analyst Sara Russo noted that ASML exceeded expectations for Q4 and 2024, driven by strong installed base services and better-than-expected costs for High-NA EUV system acceptance. Bookings stood out at €7.1 billion, far above the €3.5 billion consensus. Q4 revenue reached €9.3 billion, surpassing estimates, with a gross margin of 51.7% and EPS of €6.85. Memory sales remained stable, making up 39% of system sales and bookings.

For Q1 2025, ASML guided sales at €7.75 billion and a 52.5% gross margin, while full-year guidance remains at €32.5 billion in sales and 52% gross margin. The company will stop reporting quarterly bookings, shifting to annual backlog updates. China’s system revenue share dropped to 27% in Q4, with full-year 2024 at 41%, expected to normalize to 20% in 2025. While results were strong, Bernstein remains cautious about AI-related demand uncertainties. Russo noted:

“While overall a solid set of results, and the strong bookings number should reassure investors about 2025, we believe there is still a lot to play out in AI demand as the DeepSeek impact becomes clearer. Longer-term, we remain bullish on the opportunity for $ASML, but caution may prevail until near-term implications are better understood.”