ASML Holding NV (ASML) shares surged 5% in a 24-hour period on Wednesday, following the release of its third-quarter 2025 earnings report and positive guidance for the remainder of the year. The Dutch semiconductor equipment manufacturer posted solid results and provided an optimistic outlook, particularly in the artificial intelligence (AI) sector, despite anticipated challenges in the Chinese market.
For the third quarter of 2025, ASML reported total net sales of €7.5 billion, slightly down from €7.7 billion in the previous quarter but in line with the company's guidance. The gross margin came in at 51.6%, while net income reached €2.1 billion. Notably, the company's net bookings for the quarter totaled €5.4 billion, with €3.6 billion attributed to Extreme Ultraviolet (EUV) lithography systems, highlighting continued strong demand for its cutting-edge technology.
ASML's President and CEO, Christophe Fouquet, expressed confidence in the company's outlook, stating, "We expect fourth-quarter total net sales between €9.2 billion and €9.8 billion, with a gross margin between 51% and 53%." For the full year 2025, ASML anticipates a total net sales increase of around 15% compared to 2024, with a gross margin of approximately 52%. This guidance, particularly the projection of a "very strong fourth quarter," likely contributed to investor enthusiasm.
The company's positive stance on AI-related investments appears to be a significant driver of the stock's performance. Fouquet noted, "We have seen continued positive momentum around investments in AI, and have also seen this extending to more customers, both in leading-edge Logic and advanced DRAM." This aligns with the broader semiconductor industry trend of increasing demand for AI-capable chips. However, ASML also cautioned about expected declines in China-related sales for 2026, signaling potential headwinds in that market.
Despite these mixed signals, ASML's overall outlook remains robust, with the company stating, "We do not expect 2026 total net sales to be below 2025." This forward-looking statement, combined with the strong Q3 results and optimistic near-term guidance, appears to have bolstered investor confidence, driving the significant stock price increase.