In 2024, ASML reported record sales of 28.3 billion euros and net profits of 7.6 billion euros, largely fueled by the escalating demand for advanced AI chips. Despite this success, the company faces challenges from tightening export restrictions due to geopolitical tensions, which could significantly impact future orders, especially from China. CEO Christophe Fouquet anticipates strong growth for the global semiconductor market, projecting a potential valuation of $1 trillion in five years. However, competition from cost-effective solutions poses a new risk to ASML's high-end chip machinery sales.
ASML achieved record sales and profit in 2024, propelled by surging demand for AI chips, despite facing export restrictions impacting future growth.
CEO Christophe Fouquet noted AI's transformative role in semiconductors, projecting 9% annual global sales growth, with the market possibly reaching $1 trillion in five years.
Emerging competitors like DeepSeek may disrupt demand for high-end chips, but Fouquet believes these chips will retain strategic value for AI-integrated companies.
Geopolitical tensions and export restrictions are reshaping ASML's operations, notably reducing sales from China from 36% in 2024 to an anticipated 20% in 2025.
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