ASML Holding NV shares closed 0.9% higher at €1,190.40 in Amsterdam on Friday, with sector sentiment buoyed by a positive forecast from U.S. peer Applied Materials. The chip equipment giant's U.S.-listed ADRs edged down 0.02% to $1,406.61.
Sector Catalyst from Applied Materials
Applied Materials projected second-quarter revenue of approximately $7.65 billion, plus or minus $500 million, and adjusted earnings per share around $2.64, with a potential 20-cent variance—both exceeding analyst consensus. CEO Gary Dickerson cited accelerating industry investment in AI computing as the primary growth driver. Following the update, shares of rivals Lam Research and KLA each added nearly 3%.
AI Demand and Financial Outlook
ASML, a critical supplier of extreme ultraviolet lithography systems, reported net bookings of €13.2 billion for its latest quarter, including €7.4 billion from EUV orders. The company forecasts 2026 net sales between €34 billion and €39 billion. CEO Christophe Fouquet noted a "notably more positive" customer outlook, attributing it to rising AI-driven demand.
Regulatory and Macro Risks
Export controls remain a key concern for the semiconductor equipment sector. On Thursday, Applied Materials agreed to pay $252 million to settle U.S. allegations it shipped technology to China's Semiconductor Manufacturing International Corp without proper licenses. This underscores heightened regulatory scrutiny on transactions involving restricted Chinese entities.
Meanwhile, broader market factors persist. European shares dipped Friday amid questions about returns on heavy tech spending, though softer U.S. inflation data fueled hopes for a Federal Reserve rate cut by June.
Upcoming Milestones
ASML's next major events are its annual report on February 25, followed by first-quarter results on April 15. Monday's trading will test whether momentum from U.S. chip-equipment peers carries into European markets or is offset by macroeconomic or policy developments.
