ASML shares rise as analysts cheer guidance for sales growth through 2030

Investing.com – ASML (AS:ASML) has said it sees sales growing by an average of 8% to 14% over the next five years thanks in part to a boom in enthusiasm around artificial intelligence fueling demand for its computer chip equipment.

Europe’s biggest tech company, ASML delivered the guidance prior to its investor day in the Netherlands. In a statement, Chief Executive Christophe Fouquet argued that ASML’s ability to scale its most advanced chip manufacturing technology into the next decade positions the company well to “contribute to, and leverage the artificial intelligence opportunitiy.”

Revenues and profits would subsequently increase significantly, Fouquet said. Revenue is tipped to between 44 billion euros and 60 billion euros by 2030, while gross margins are expected to come in at 56% to 60% — matching its prior outlook given in 2022.

Analysts at JPMorgan Chase (NYSE:JPM) said the lack of changes was a “positive,” particularly after ASML unveiled lower-than-anticipated sales expectations for its 2025 fiscal year in October.

“We did not expect the company to raise guidance for 2030 after its miss of 2025 guidance and are of the view that though an AI growth dividend exists for ASML there was no need for the company to guide for it now given the […] weaker-than-expected consumer environment,” the analysts led by Sandeep Deshpande wrote in a note to clients.

They added that ASML’s current forecast implies roughly 10% compound annual growth in revenue between next year and 2030, as well as operating income expansion of around 15%.

The figures “should make the stock attractive for investors as the market begins looking beyond the ongoing semiconductor downturn,” the JPMorgan analysts said.

ASML has been hit by its customers, including tech firms like Taiwan Semiconductor Manufacturing Corp. and Intel (NASDAQ:INTC), reining in equipment orders due to recently tepid demand for non-AI chips.

The group also faces bans on selling its most of its high-end lithography gear to China, and investors are wary about the prospects for its operations in the country following Donald Trump’s victory in the US presidential election last week.

Shares in ASML had risen by more than 5% in mid-morning European trading on Thursday.

(Reuters contributed reporting.)