On July 17, ASML reported that its second-quarter revenue and profit both exceeded expectations, mainly due to a significant increase in shipments of Immersion Deep Ultraviolet (DUV) lithography machines. The rising demand for AI chips has driven the demand for ASML's critical semiconductor manufacturing equipment, with net orders totaling €5.6 billion, up more than 24% year-over-year.

ASML expects third-quarter 2024 net sales to be between €6.7 billion and €7.3 billion, below analysts' expectations of €7.6 billion. The primary reason is the lower-than-expected EUV shipments in the second quarter, leading to a potentially slower growth of EUV shipments in the third quarter than initially anticipated.

The U.S. government is considering imposing stricter trade restrictions on companies including ASML to prevent China from acquiring advanced semiconductor technology. This might involve the Foreign Direct Product Rule (FDPR), which allows control over foreign products made using U.S. technology. Since 49% of ASML's sales come from China, this poses a potential risk.

ASML anticipates 2024 to be a transitional year and expects to enter a cyclical upturn in 2025. In the coming years, with TSMC and Samsung building new semiconductor manufacturing plants in the U.S., the demand for ASML's technology is expected to continue expanding, further driving sales growth. However, geopolitical risks remain, and export restrictions from the U.S. and Dutch governments may impact ASML's sales. The Chinese market, which accounts for a significant portion of its total revenue, remains a key market for ASML.