ASML is experiencing several tailwinds including an expectation of increased chipmaking capacity and continued demand for AI semiconductors.

THE HAGUE, Netherlands -- Dutch semiconductor chip machine maker ASML recorded a record net profit of 9.6 billion euros ($11.5 billion) in 2025 on sales of 32.7 billion euros fueled by AI-driven demand, the company reported Wednesday as it also announced plans to slash its workforce by about 1,700, about 4% of its workforce.

Rarely have two earnings reports so neatly aligned, as microchip equipment maker ASML Holding reported surprisingly strong orders growth as memory-chip producer SK Hynix said it would make a “considerable increase” in capital expenditure.

Bookings surged in the fourth quarter, indicating strong demand.

The company logged record quarterly orders, showing how tech clients continue to plow money into tools for making sophisticated semiconductors.

ASML has forecast bumper sales of its chip manufacturing equipment this year on the back of the AI boom, building on a blockbuster fourth quarter and sparking a rally across the tech sector on Wednesday.

Shares of the company jumped 5.9% in early trade, also pulling its European peers higher, before retreating into negative territory to close down 1.9%. Chip equipment maker ASMI ended 1.2% lower, STMicro gained 1.9%, and Infineon added 3%.

Analyst maintains $1,642 target before Wednesday earnings. China orders hit EUR 3.27B record as chipmakers boost 2026 spending.

ORDERS FORECAST: The Dutch semiconductor-equipment maker is expected to report orders of 6.95 billion euros ($8.25 billion), according to Visible Alpha. The forecast is slightly below orders of 7.09 billion euros that ASML reported a year earlier.

ASML is the only company in the world that makes extreme ultraviolet lithography machines, which are crucial for manufacturing advanced AI chips