Financial Union News, November 14 (Editor Marlan) Global leading semiconductor equipment manufacturer ASML announced on Thursday that sales are expected to increase by 8%-14% in the next five years, with artificial intelligence continuing to drive semiconductor demand prosperity.

The company expects sales to be between 44 billion-46 billion euros by 2030, with a gross margin of approximately 56%-60%, maintaining its previous optimistic forecast.

Analysts say this outlook is comforting to the market, as many investors were worried that Trump's election as US President would impact ASML's global sales outlook, and were concerned about ASML's Q3 report.

ASML is the only company globally producing cutting-edge lithography machines, which are a key tool for semiconductor companies to produce advanced chips. Therefore, ASML is often seen as the industry's barometer and an early indicator to determine global semiconductor demand.

ASML's Chief Financial Officer, Roger Dassen, has confirmed the company's capital allocation strategy and aims to continue returning significant cash to shareholders through increased dividends and share buybacks.

Restore Confidence

Although ASML remains confident, its financial report released last month showed that third-quarter orders were significantly below market expectations, causing declines in its stock and other chip stocks. The company also lowered next year's sales forecast in the latest quarterly report, reflecting the sluggish sales of chips outside of artificial intelligence chips.

In addition, investors are also concerned about the US government's continuous escalation of chip restrictions, such as repeatedly using export controls to limit the rise of the China market, which may impact ASML Holding's sales in China.

ASML Holding CEO Christophe Fouquet stated last month that ASML expects the US to further increase pressure and further restrict sales to China. Next year, sales in the Chinese market are expected to account for about 20% of the total revenue of the company, while sales in the Chinese market in the third quarter nearly account for half.

Fouquet also predicts that the slow recovery of the chip market will continue until 2025. However, ASML Holding and the entire industry will see growth in both next year and 2026.

RHB Securities analyst Kevin Wang believes the situation still looks positive, as some investors originally expected ASML Holding to lower its performance expectations, but management apparently remains bullish on ASML Holding's future sales and profit growth.