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ASML rebounds, expects DeepSeek’s AI leap to boost chip demand

Random Tech by Random Tech
January 29, 2025
in Random Tech
Reading Time: 4 mins read
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Thomas Macaulay
2025-01-29 05:27:00
thenextweb.com

Shares in ASML have bounced back from the hit inflicted by DeepSeek’s AI advances. Celebrating the results, ASML predicted that the sudden emergence of low-cost models will boost demand for the firm’s semiconductor machines.

The company’s stock price rose by over 10% on Wednesday after the Dutch business reported impressive orders for its chip-making equipment. The tools produce the most advanced semiconductors in the world — and ASML is the only company that manufactures them.

This dominant position has made ASML the second most valuable tech firm in Europe. But the business was shaken on Monday by DeepSeek’s rapid AI progress.

Last week, the Chinese company released a new chatbot and models with a stunning blend of high performance and low cost.

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The results sent tech stocks spiralling. Nvidia set an alarming precedent, suffering the largest rout in market history.

Shares in ASML slumped by as much as 12%. But the company has been reinvigorated by strong results from 2024.

The firm reported total annual sales of €28.3bn — just above its forecast of €28bn. Net bookings, meanwhile, surged to €7.1bn in the fourth quarter of 2024 — 169% above the €2.63bn reported in Q3.

Christophe Fouquet, ASML’s CEO, expects demand for the company’s machines to grow. He told CNBC that the business will benefit from rise of low-cost AI models developed by the likes of DeepSeek.

“A lower cost of AI could mean more applications,” Fouquet said. “More applications means more demand over time. We see that as an opportunity for more chips demand.”

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