Chip giant ASML saw its stock surge 7% on Wednesday after delivering a stunning earnings report. The company proved that the boom in Artificial Intelligence (AI) is still going strong.
Investors were cheering a massive spike in new orders. ASML reported €13.2 billion ($15.8 billion) in bookings for the fourth quarter. This number crushed expectations. Analysts had only predicted €6.3 billion. ASML effectively doubled that number, marking a record quarter for the Dutch company.
Guidance and Buybacks
The good news did not stop at orders. ASML announced a plan to buy back €12 billion of its own shares by the end of 2028. The company also gave a strong forecast for 2026. They expect total sales to hit between €34 billion and €39 billion. This creates a revenue growth of at least 20% compared to last year. Management says chipmakers are rushing to buy tools to build more AI infrastructure.
Cutting Jobs to Move Faster
Despite the record profits, ASML is making tough changes. The company announced it will cut roughly 1,700 jobs, mostly in the Netherlands and the United States. ASML says the company has become “less agile.” These cuts are designed to make the business run smoother and faster.
Why Demand is So High
Two main factors are driving this growth:
- The AI Boom: Companies like TSMC need ASML’s most advanced “EUV” machines to make chips for Nvidia and AMD.
- Memory Shortage: There is a shortage of memory chips. Manufacturers like SK Hynix and Samsung are buying more machines to increase production. Barclays analysts predict SK Hynix alone will buy 12 of these massive machines in 2026.
While sales to China are expected to drop to 20% of total revenue due to export bans, demand from the rest of the world is more than making up for it.
SOURCES
- ASML Q4 2025 Financial Results
- CNBC (Market Data Jan 28, 2026)
- Reuters / Visible Alpha (Analyst Estimates)