U.S.-listed shares in ASML jump after Dutch chipmaker posts orders jump

Investing.com -- U.S.-listed shares in ASML (NASDAQ:ASML) jumped in early trading on Wednesday after the semiconductor equipment manufacturer posted record quarterly orders and better-than-anticipated fourth-quarter profit.

The Dutch group -- and Europe's biggest tech firm by market value -- reported net bookings of €9.2 billion in the three months ended on Dec. 31, more than triple the total registered in the prior quarter. Net income in turn jumped by 9% to €2.05 billion, topping expectations of €1.87 billion, according to LSEG data cited by Reuters.

Demand was particularly strong for ASML's deep ultraviolet lithography and advanced extreme ultraviolet lithography equipment, both of which are used in the manufacturing of semiconductor chips.

In a statement, Chief Executive Peter Wennink said the strong order intake "clearly supports" future sales. However, the company kept a conservative view for the 2024 fiscal year, predicting revenue growth "similar" to the prior 12-month period.

"The semiconductor industry continues to work through the bottom of the cycle," Wennink said. "Although our customers are still not certain about the shape of the semiconductor market recovery this year, there are some positive signs."

Meanwhile, the imposition of American and Dutch export regulations on China is projected to dent 2024 sales in the country -- the third-largest market for ASML (AS:ASML) -- by as much as 15%, Chief Financial Officer Roger Dassen flagged.

The U.S. and the Netherlands have taken steps recently to curb the access of key chipmaking tools to Chinese semiconductor manufacturers, in a bid to hobble Beijing's ability to develop technologies that could power its broader military capabilities.

In a note to clients, analysts at Morgan Stanley said they expect to see "growing enthusiasm" for ASML's "strong" order book this year, which will help fuel sales in 2025.

Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon PROPLUSBIYEARLY to get a limited time discount on our Pro and Pro+ subscription plans. Click here to find out more, and don't forget to use the discount code when checking out!