Tue Oct 15 14:30:00 UTC 2024: ## ASML Holding: Orders and AI Boom to Drive Earnings Report

**Amsterdam, Netherlands** – ASML Holding NV, Europe’s most valuable tech company, is set to report its third-quarter earnings on Wednesday, with investors eagerly awaiting news on the chip equipment maker’s performance amidst a volatile summer.

Shares of ASML have dipped 20% since July, influenced by concerns over potential US restrictions on its business in China and a broader market shift away from tech stocks. However, analysts remain optimistic, expecting strong orders driven by the ongoing AI boom.

“We are expecting healthy orders,” said Jefferies analyst Janardan Menon, noting that bookings are likely to surpass the €5.57 billion reported last quarter. He expects robust demand from TSMC, ASML’s major customer, and a stable Chinese market.

While the US has introduced export controls on ASML’s most advanced equipment in China, the country has been purchasing older, unrestricted technology to support semiconductor production. However, analysts caution that further restrictions could impact ASML’s future revenue, with some estimating a potential 25% sales decline in China next year.

Despite these geopolitical uncertainties, ASML’s customer TSMC recently reported better-than-expected revenue, and shares in other AI-related companies like Nvidia have rebounded after summer declines, suggesting continued momentum in the AI market.

Analysts are generally bullish on ASML, with most maintaining a “buy” rating and an average price target implying 24% upside potential over the next year. ASML’s investor day in November is also expected to provide further insights into its order book and China strategy.

Beyond ASML’s earnings, the broader tech landscape remains active. Warner Bros. Discovery will launch its Max streaming service in new Asian markets in November, while Ericsson AB reported strong third-quarter results driven by its partnership with AT&T. Meanwhile, Tesla Inc. has reportedly relied on human control for some of its Optimus robot prototypes, despite touting the robots’ autonomy.

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