ASML Q4 Earnings Preview: DeepSeek, Export Controls, EUV Bookings In The Spotlight

Benzinga01-29

ASML Holding N.V. (NASDAQ:ASML) is set to report its fourth-quarter financial results on Wednesday before the opening bell. Investors will be interested in its EUV machine bookings, commentary on the recent DeepSeek developments and export controls. 

DeepSeek: The surprise release of DeepSeek by a Chinese AI start-up over the weekend rattled the artificial intelligence and semiconductor markets. Investors will be interested in hearing any commentary from ASML management regarding DeepSeek and other potential cost-effective AI models that may affect demand for high-performance chips and ASML’s equipment. 

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Last Friday, Texas Instruments, Inc. (NASDAQ:TXN) issued soft first-quarter revenue guidance and ASML will be looking for reassurance about the long-term adoption rates of ASML’s EUV lithography systems in the form of EUV bookings figures and commentary from executives. 

Export Controls: Last week, Dutch Prime Minister Dick Schoof said he anticipates President Donald Trump will continue urging the Netherlands to restrict exports of chip-making machines from Netherlands-based ASML to China. Investors will be looking for any further commentary from ASML regarding the effect of export controls on its business. 

Expert Ideas: Heading into the fourth quarter print, Wells Fargo analyst Joseph Quatrochi maintained an Overweight rating on ASML stock and raised the price target from $790 to $860.

The three most recent analyst ratings have an average price target of $814 with an implied 20.58% upside for ASML shares.

According to estimates from Benzinga Pro, analysts expect ASML to report quarterly earnings of $6.71 per share on revenue of $9.02 billion. The company has beat analysts' expectations on the top and bottom lines for the past two consecutive quarters. 

ASML Price Action: According to data from Benzinga Pro, ASML shares are down 1.16% at $682.96 at the time of publication Tuesday. 

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