Dutch semiconductor giant ASML Holding (ASML) has reported that its orders increased 24% year-over-year in the second quarter as global demand for artificial intelligence (A.I.) processors strengthens.
Specifically, ASML announced that its net bookings, or orders for its chipmaking machinery, rose 24% from a year earlier between April and June of this year.
Based in the Netherlands, ASML is one of the world’s leading semiconductor companies as it makes extreme ultraviolet lithography machines that are needed to produce the most advanced microchips and processors.
For Q2, ASML reported revenue of 6.24 billion euros ($6.80 billion U.S.), which beat analyst expectations for 6.03 billion euros.
The company’s net profit in the quarter totaled 1.58 billion euros versus 1.43 billion euros that was forecast on Wall Street.
While its latest results beat analyst expectations and showed strength, ASML’s revenue was down nearly 10% from a year earlier and its profit declined by 18.7% year-over-year.
Management at ASML has called 2024 a “transition year” for the company as it ramps up production to meet rising global demand for its technology and equipment.
ASML has also been hurt by export restrictions to China, which the Dutch government implemented at the urging of the U.S.
Even with the export controls, China remains a huge market for ASML, accounting for 49% of its Q2 sales.
On an earnings call, executives at ASML said they now expect third-quarter revenue of 6.7 billion euros to 7.3 billion euros. Analysts had expected Q3 sales of 7.6 billion euros.
The stock of ASML fell 7% on news of its Q2 financial results. Year-to-date, the stock is up 49% and trading at $1,068.19 U.S. per share on the Nasdaq exchange.
Tech Insider
