ASML, a Dutch tech company, reports profits and sees a promising future for AI

ASML Posts Sharp Rise in 2025 Profit, Sees Strong Growth Ahead on AI Demand

Dutch semiconductor equipment maker ASML reported a strong increase in annual net profit on Wednesday and forecast continued growth, driven by sustained demand for artificial intelligence-related chips.

ASML, whose cutting-edge machines are essential for manufacturing advanced semiconductors used in products ranging from smartphones to military systems, posted after-tax profit of €9.6 billion ($11.5 billion) for 2025, up from €7.6 billion in 2024.

“In recent months, many of our customers have expressed a notably more positive view of the medium-term market outlook, primarily based on stronger expectations around the durability of AI-driven demand,” Chief Executive Officer Christophe Fouquet said in a statement.

Fourth-quarter net bookings — a closely watched indicator of future performance — surged to €13.2 billion, compared with €5.4 billion in the third quarter of 2024, underscoring strengthening order momentum.

Total net sales for 2025 reached a record €32.7 billion, exceeding the company’s earlier guidance that sales would not fall below the €28.3 billion recorded last year.

Looking ahead, ASML forecast net sales of between €34 billion and €39 billion in 2026, and said it expects between €8.2 billion and €8.9 billion in sales for the first quarter of the current year.

“We expect 2026 to be another growth year for ASML’s business,” Fouquet said.

Geopolitical pressures

The company continues to operate amid heightened geopolitical tensions, as it remains central to a U.S.-led effort to restrict exports of advanced chipmaking technology to China over concerns such tools could enhance Beijing’s military capabilities. China has criticised the curbs, calling them “technological terrorism.”

ASML has previously warned that sales to China are expected to “decline significantly” in 2026 after particularly strong demand in 2024 and 2025.

Separately, geopolitical tensions escalated last year when the Dutch government temporarily took control of Nexperia, a Chinese-owned manufacturer of lower-end semiconductors, triggering a dispute that threatened supply chains for European carmakers. China later agreed to resume exports of Nexperia chips following high-level trade talks.

Long-term outlook

Despite near-term uncertainty linked to export restrictions, ASML said it remains confident about its long-term prospects. The company expects the rapid expansion of the AI market to lift annual sales to between €44 billion and €60 billion by 2030.

For the fourth quarter, ASML reported sales of €9.7 billion, within its forecast range of €9.2 billion to €9.8 billion. Net profit for the quarter rose to €2.8 billion, compared with €2.1 billion in the third quarter.