ASML Crushes Q4 2024 Earnings: What are the Key Takeaways for Investors?

In a big week for Big Tech earnings, semiconductor equipment giant ASML Holding NV (NASDAQ: ASML) reported its latest Q4 2024 earnings on Wednesday (29 January) before the market open in the US.

ASML ended the trading day over 3% after delivering strong Q4 2024 earnings, driven by better-than-expected bookings, AI-driven chip demand, and a reaffirmed 2025 outlook. This rally comes after Monday’s selloff over China’s DeepSeek AI chip announcement, which briefly sparked concerns about demand for high-end chips. 

However, ASML’s results quickly restored investor confidence, reinforcing its dominance in advanced semiconductor manufacturing. But is this momentum sustainable? Here’s a quick breakdown of the key takeaways.

ASML Exceeds Expectations

In Q4 2024, ASML reported total net sales of €9.3 billion (US$9.7 billion), surpassing the high end of its guidance. Net income came in at €2.7 billion, delivering earnings per share (EPS) of €6.85. 

The company’s gross margin stood at 51.7%, reflecting strong operational efficiencies and higher-than-expected installed base revenue.

Source: ASML Q4 2024 and full-year 2024 results presentation

ASML reported full-year 2024 sales of €28.3 billion. Net bookings came in strong at €7 billion, including €3 billion from EUV systems, reinforcing continued demand for cutting-edge semiconductor equipment. 

The results reflect ASML’s dominance in the lithography market despite supply chain uncertainties and geopolitical risks, supplying the most advanced chipmakers – including TSMC, Samsung, and Intel – with EUV machines critical for AI chips and advanced semiconductors.

AI Driving Demand for EUV Machines

The AI chip boom remains a key growth driver for ASML, as major foundries and memory makers ramp up investment in advanced logic and high-bandwidth memory (HBM) production, both requiring ASML’s EUV lithography tools.

ASML maintained a 51.7% gross margin in Q4 2024 and generated €8.8 billion in free cash flow for the quarter. Full-year net income reached €7.6 billion, with EPS of €19.25. The company returned €3 billion to shareholders via dividends and share buybacks.

Meanwhile, management guided Q1 2025 revenue to within a range of €7.5 billion to €8 billion and full-year 2025 sales of €30 billion to €35 billion, reflecting continued strength in EUV and DUV demand.

China Sales Normalising, 2026 to be a Year of Growth

After two years of backlog-driven growth, ASML expects its China business to return to a more typical contribution (around 20% of sales) in 2025. However, geopolitical risks and export controls remain key factors to watch.

ASML confirmed that multiple High NA EUV machines have now been installed and tested by customers, showing positive feedback and potential for commercial adoption in the coming years.

While it’s too early for official guidance, ASML expects 2026 to be another growth year, fuelled by new EUV adoption, AI-driven semiconductor expansion, and increasing logic & memory demand.

ASML Remains an AI Power Play

ASML’s latest earnings report proves that the AI boom is far from over, and demand for cutting-edge chipmaking technology remains strong. 

Despite China-related concerns and market volatility, the company’s bookings momentum, strong margins, and solid guidance suggest continued growth ahead. For investors, the question isn’t if ASML will benefit from AI – it’s how much it will benefit off the trend. 

While macroeconomic and geopolitical risks persist, the long-term growth story remains intact for ASML shareholders. If you're betting on the AI revolution, ASML might just be one of the best ways to play it.