- 1. ASML raised 2024 net sales guidance to €30 billion post-Q1 beat.
- 2. Q1 sales hit €7.7 billion, up 28% year-over-year.
- 3. EUV backlog at €38.1 billion supports AI chip demand.
ASML Holding NV (ASML.AS) raised its 2024 net sales guidance to €30 billion on April 17, 2024. First-quarter earnings beat analyst estimates. CFO Roger Dassen cited demand for extreme ultraviolet (EUV) lithography systems used in AI chip manufacturing.
ASML reported Q1 net sales of €7.7 billion, up 28% from €6.0 billion in Q1 2023. Net income hit €2.4 billion, above forecasts of €1.9 billion from Bloomberg consensus of 25 analysts.
Q1 Results and ASML Guidance Update
Q1 gross margin reached 54%, up from 49% in 2023, per Dassen. ASML narrowed full-year gross margin to 51%-53% from 50.5%-53%. Net bookings guidance now stands at €20-25 billion for 2024.
CEO Christophe Fouquet said, "Orders from logic and memory customers remain strong," per the April 17 transcript.
The CNN Money Fear & Greed Index hit 21 on April 17, 2024, per CNN Business. Bitcoin traded at $77,380 USD, up 2.9% with $1.549 trillion market cap. Ethereum reached $2,430.06 USD, up 3.2% to $293.3 billion, per CoinGecko.
ASML Holds 90% Share of EUV Lithography Market
ASML controls over 90% of the EUV market, per its 2023 annual report to Euronext Amsterdam. TSMC and Samsung use ASML Twinscan systems for sub-3nm circuits in AI accelerators.
EUV lithography employs 13.5-nm wavelength light for features under 2nm, per ASML's technology page. This supports Nvidia Blackwell GPUs and AMD MI300 series. TSMC's 2nm process requires ASML high-NA EUV, with 2024 shipments.
Morgan Stanley's Joseph Moore wrote in an April 18 note, "ASML's guidance upgrade validates sustained AI infrastructure buildout, with EUV backlog supporting multi-year growth."
ASML equipment accounts for 20-30% of semiconductor fab costs, per 2023 McKinsey report on supply chains.
ASML Role in Nvidia, TSMC AI Chip Equipment
TSMC makes Nvidia H100 and B200 chips with ASML EUV tools. TSMC posted 52% AI revenue growth in Q1 2024, per its April 18 release. Samsung advances SF4 node with ASML systems. Intel uses them for 18A process.
ASML Q1 backlog rose to €38.1 billion from €37.0 billion at 2023 year-end.
JPMorgan's Harlan Sur wrote in an April 17 note, "ASML guidance signals strength in semiconductor equipment amid $1 trillion AI capex forecasts by 2027."
Crypto data from CoinGecko on April 17, 2024:
- Asset: BTC · Price (USD): 77,380 · 24h Change: +2.9% · Market Cap (USD): 1,549.4B
- Asset: ETH · Price (USD): 2,430.06 · 24h Change: +3.2% · Market Cap (USD): 293.3B
- Asset: XRP · Price (USD): 1.48 · 24h Change: +1.9% · Market Cap (USD): 91.3B
- Asset: BNB · Price (USD): 641.46 · 24h Change: +1.0% · Market Cap (USD): 86.5B
- Asset: SOL · Price (USD): 89.11 · 24h Change: -0.4% · Market Cap (USD): 51.3B
Market Reaction to ASML Guidance
ASML shares rose 1.2% to €912 in Amsterdam on April 18, per Euronext. Nvidia (NVDA) gained 0.8% to $86.40 USD on Nasdaq. Tech stocks fluctuated on Fed rate views.
Gartner projects $1 trillion in AI infrastructure spending by 2027. Fear & Greed at 21 showed caution, but crypto rose.
Q2 Outlook Reinforces ASML Guidance
ASML forecasts Q2 net sales of €6.0-6.5 billion and bookings of €5.0-5.5 billion. Investors watch Q2 results on July 17. AI demand sustains ASML guidance, per Fouquet.
ASML guidance details in Motley Fool analysis. EUV details. Bitcoin data from CoinGecko.
Frequently Asked Questions
What changes did ASML make to its 2024 guidance?
ASML raised 2024 net sales outlook to €30 billion from €27.3-28.3 billion, after Q1 sales of €7.7 billion beat estimates, per April 17 release.
What is ASML's role in AI chip production?
ASML provides EUV lithography systems for sub-3nm chips used by TSMC and Samsung in Nvidia GPUs. It holds over 90% EUV market share, per 2023 report.
What does Fear & Greed Index at 21 indicate?
CNN Money's index at 21 shows extreme fear on April 17, 2024. Bitcoin gained 2.9% to $77,380 USD, per CoinGecko.
How does ASML connect to Nvidia supply chain?
TSMC uses ASML EUV for Nvidia H100/B200 chips. Raised guidance projects stronger 2024 sales supporting AI ramps.
