ASML Shares Surge to Unprecedented Peak on AI-Driven Demand

ASML shares surge as AI-driven chip demand fuels record €13.2B Q4 orders. The company announces a new €12B share buyback and strong 2026 outlook.

The equity of Dutch semiconductor equipment manufacturer ASML has soared to a record high, capping a remarkable rally that has seen its value nearly double over the past six months. This surge is fueled by exceptional fourth-quarter order intake and robust demand for its cutting-edge chipmaking machinery, which is critical for artificial intelligence applications.

AI Expansion Fuels Unprecedented Orders

A primary catalyst for the share price appreciation is the skyrocketing demand for processors that power artificial intelligence systems. Chipmakers are committing billions to expand production capacity, creating a direct tailwind for ASML. The company holds a unique position as the sole supplier of extreme ultraviolet (EUV) lithography systems, which are essential for manufacturing the world's most advanced semiconductors. Revenue from these EUV systems alone jumped 39% in 2025, reaching €11.6 billion.

The scale of demand became clear in January with the release of outstanding quarterly results. ASML reported fourth-quarter 2025 order bookings of €13.2 billion, dramatically surpassing analyst forecasts. Orders for its most advanced EUV tools accounted for €7.4 billion of this total. For the full year 2025, the company recorded revenue of €32.7 billion and a net profit of €9.6 billion. Its order backlog stood at a substantial €38.8 billion by year-end.

Strong Financial Performance and Shareholder Returns

The company's fourth-quarter 2025 revenue reached €9.7 billion, supported by a gross margin of 52.2%. Looking ahead, management has provided an optimistic outlook. For the full year 2026, ASML anticipates revenue between €34 billion and €39 billion, with a projected gross margin in the range of 51% to 53%. First-quarter 2026 revenue is guided to be between €8.2 billion and €8.9 billion.

In tandem with this strong financial position, ASML announced enhanced returns for shareholders. The board approved a new share buyback program of up to €12 billion, scheduled to run through the end of 2028. This follows a previous repurchase initiative, which ran from 2022 to 2025 and acquired shares worth €7.6 billion. Furthermore, the dividend for 2025 was increased by 17% to €7.50 per share.

Technological Milestones and Future Reporting

ASML’s technological roadmap continues to advance. In early 2026, Intel qualified ASML’s next-generation EXE:5200B system for high-volume manufacturing, marking a significant milestone for future production nodes and sustaining ASML’s technology leadership.

Investors can expect further details on the company’s strategy and operations when ASML publishes its complete annual report for 2025 on February 25. This document will contain additional information on strategic direction and sustainability reporting.