ASML anticipates that demand for AI will drive growth through 2030

The biggest tech company in Europe, ASML (ASML.AS), which manufactures computer chip equipment, opened a new tab on Thursday and stated that it anticipates sales to increase by 8% to 14% over the next five years due to the high demand for its most cutting-edge tools being fueled by the AI boom. Ahead of the business’s investor day in Veldhoven, the Netherlands, where it would be questioned about its chances for sales to China following Donald Trump’s election as U.S. president, the company released the reassuring guidance, according to analysts.

“We expect that our ability to scale EUV technology into the next decade … positions ASML well to contribute to, and leverage the artificial intelligence opportunity,” Chief Executive Christophe Fouquet said in a statement. This would allow ASML to deliver significant revenue and profitability growth, he added.

In keeping with its prior long-term projection from 2022, the company projected sales of 44 billion euros and 60 billion ($46.4 billion to $63.3 billion) by 2030, with gross margins ranging from 56% to 60%.

After third-quarter earnings in October fell short of analysts’ estimates by the largest margin in years due to equipment orders being delayed by clients including Samsung and Intel due to weakness in semiconductor markets other than artificial intelligence, experts said it was comforting. According to Kevin Wang of Mizuho Securities, “the first glance looks positive,” but some investors had anticipated a reduction in forecast. “Management remains bullish on ASML’s sales and profitability growth.”

The circuitry of the most sophisticated circuits is constructed using ASML’s EUV tools by chipmakers like Taiwan’s TSMC. Following waves of restrictions by the Dutch and U.S. governments that started during Trump’s first term, the business is prohibited from selling the majority of its sophisticated EUV and DUV lithography equipment in China. After contributing more than 40% of total sales over the previous six quarters, ASML stated in October that it anticipated China sales to drop to 20% of overall sales.