ASML’s Stunning Order Surge Signals Unwavering AI Demand

ASML USN070592100

The Dutch semiconductor equipment giant ASML has delivered a quarterly performance that didn't just beat Wall Street forecasts—it shattered them. Driven by an insatiable global appetite for artificial intelligence infrastructure, the company reported a staggering influx of new orders. However, amidst these record figures and a significant boost to shareholder returns, management has unveiled a surprising plan to streamline its workforce.

Capitalizing on its formidable order book, ASML is taking concrete steps to reinforce investor confidence. The company announced a new share buyback initiative valued at up to €12 billion, set to run through the end of 2028. Concurrently, it plans to raise its dividend for 2025 by 17% to €7.50 per share.

The forward guidance for the 2026 fiscal year further underscores management's optimism. ASML projects total revenue to land between €34 billion and €39 billion, marking a clear increase from the €32.7 billion anticipated for 2025. For the first quarter of 2026 alone, sales are expected to reach as high as €8.9 billion.

Record Orders Fueled by AI Expansion

The primary catalyst for the market's reassessment of ASML's equity is the massive global build-out for AI. Net bookings for the past quarter soared to €13.2 billion. This figure nearly doubles the average analyst estimate of approximately €6.85 billion, highlighting the tech industry's profound reliance on ASML's unique technology.

More than half of the booking value, specifically €7.4 billion, was attributed to the company's cutting-edge Extreme Ultraviolet (EUV) lithography systems. These machines are indispensable for manufacturing the most powerful AI chips, which are currently in critically short supply worldwide.

Strategic Workforce Reduction Amid Growth

One aspect of the report appears to contrast with the outstanding financial results: ASML intends to eliminate approximately 1,700 positions. This reduction affects about 4% of its total workforce, with a focus on leadership roles within technology and IT departments in the Netherlands and the United States.

The company clarified that this move is not motivated by cost pressures but by a strategic aim to reduce internal complexity. By creating leaner structures, ASML believes its engineers can operate more efficiently, unimpeded by bureaucratic processes.

With a substantial order backlog now standing at €38.8 billion, the firm enjoys considerable visibility and planning security for the coming years. The market has responded favorably to this combination of explosive growth and operational streamlining. Since the start of the year, ASML shares have advanced by more than 22%, trading well above their 200-day moving average.

@ boerse-global.de | USN070592100 ASML’S