ASML Poised for Surge in Orders Amid Booming AI Chip Demand

ASML, a leading supplier of chip-making equipment, is expected to report a surge in orders as demand for AI and older-generation chips rises. Analysts predict new CEO Christophe Fouquet will address these trends and potential impacts on the company's financial outlook amid ongoing U.S.-China technology tensions.

ASML, the top equipment supplier to computer chip makers, is set to report a surge in new orders when its new CEO presents second-quarter results on Wednesday. The spike is driven by customers expanding capacity to meet soaring demand for AI chips.

Another focal point will be whether Chinese firms maintained significant purchases of equipment for older chip generations, a concern for Western policymakers who have restricted the acquisition of more advanced technologies. Analysts predict ASML may upgrade its guidance as major chip producers, like Taiwan's TSMC, increase and speed up their equipment purchases.

ASML dominates the lithography systems market, key to chip miniaturization. With 2024 dubbed a 'transition' year, the company expects robust growth by 2025, fueled by demand for advanced tools. ASML's shares have surged 45% this year, trading near record highs.

(With inputs from agencies.)