ASML’s results are cause for optimism

ASML maintains a “conservative view” for 2024, but reading between the lines in management’s comments reveals cause for optimism that the upswing in the semiconductor industry may start well before year’s end. The Veldhoven-based equipment manufacturer itself is largely capacity-constrained, although there may be opportunities to deliver higher-than-guided sales in the EUV business.

Officially, ASML designates 2024 as a “transition year” and “still believes it’s too early to revise our guidance” of flat revenue growth, despite “a few positive data points.” These bright spots are improving inventory levels in end markets, climbing utilization rates of ASML’s tools and, last but not least, a steep upswing in order intake – a record of 9.2 billion dollars in Q4 2023.