ASML (ASML) stock rallied Thursday after the European semiconductor equipment leader provided reassuring long-term guidance at an investor event.
The Netherlands-based company reiterated its 2030 goal of annual revenue between 44 billion and 60 billion euros with a gross profit margin between 56% and 60%. By comparison, it expects 2025 revenue of 30 billion to 35 billion euros with a gross margin of 51% to 53%.
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“We expect that our ability to scale EUV (extreme ultraviolet) technology into the next decade and extend our versatile holistic lithography portfolio, positions ASML well to contribute to, and leverage the artificial intelligence (AI) opportunity, and allows ASML to deliver significant revenue and profitability growth,” Chief Executive Christophe Fouquet said in a news release.
The Dutch company makes advanced lithography equipment for etching tiny circuits onto semiconductors. It is the world’s only manufacturer of EUV lithography equipment.
ASML expects annual sales growth to average 8% to 14% over the coming five years, Reuters reported.
ASML Stock Pops In ‘Relief Rally’
In morning trades on the stock market today, ASML stock advanced more than 5% to 707.45.
Mizuho Securities trading-desk analyst Jordan Klein described the stock move as a “relief rally” because ASML didn’t cut its outlook.
“Albeit who on (the) buy side wants to rush out and buy a 2030 revenue growth target right now?,” Klein said in a client note.
ASML stock is down nearly 24% in the past three months and 6.5% year to date.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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