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ASML reports better-than-expected results in Q4

AMSTERDAM, Jan 24 (Reuters) – ASML Holding, a leading supplier to semiconductor makers, reported better-than-expected fourth-quarter net profit and revenue on Wednesday, driven by strong sales of manufacturing equipment in China.

Net profit for the period was 2 billion euros, an increase of 9%, and its turnover reached almost 7.24 billion euros. Analysts polled by LSEG had expected 1.87 billion euros and 6.9 billion euros, respectively.

Europe’s largest technology company by market capitalization recorded more than nine billion euros in orders, almost three times the previous quarter. This is a record level of orders for the quarter.

On the Amsterdam Stock Exchange, ASML shares gained more than 6% in the morning.

Despite the good quarterly results, ASML maintained its forecast of stable sales in 2024.

“The semiconductor industry continues to work at the end of the cycle,” CEO Peter Wennink said in a statement.

“While our customers are still uncertain about what shape the recovery in the semiconductor market will take this year, there are some positive signs,” he added, citing rising demand for microchips and rising fab utilization rates.

Taiwan-based TSMC, which makes chips for Apple and Nvidia and is ASML’s biggest customer, said last week that it expects stable capital spending in 2024.

“After TSMC’s good results and good outlook last week, we were hoping that (ASML) would raise their outlook for 2024. But they are still a bit conservative,” said Jos Versteeg, an analyst at InsingerGilissen.

ASML predicts that 15% of its sales in China, so far its third-largest market after Taiwan and South Korea, will be affected in 2024 by new restrictions on exports from the US and the Netherlands introduced last year.

(Reporting by Toby Sterling; French editing by Gaëlle Sheehan; Editing by Blandine Hénault)

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