ASM International, Europe's second-largest manufacturer of chipmaking equipment, has announced an optimistic forecast for its second-quarter revenue, predicting it will reach around 980 million euros (approximately $1.15 billion). This projection significantly exceeds the LSEG data estimates of 883.9 million euros.
In the first quarter, ASM reported revenues of 862.5 million euros, which was also above analysts' expectations of 828.5 million euros. This positive trend reflects a robust demand for advanced chipmaking technology.
Market Reaction
The forecast was released after the European market closed, drawing attention away from ASM's decision to discontinue publishing new order figures due to their volatility. Analysts have expressed that the strong revenue guidance diminishes concerns regarding the lack of bookings data.
"With a beat in guidance like this, we couldn't care less about no longer providing bookings numbers," stated Michael Roeg, an analyst at Degroof Petercam.
Industry Context
ASM's positive outlook aligns with broader industry trends, as major players like ASML have also recently raised their revenue forecasts. This is largely attributed to sustained demand for artificial intelligence capabilities, even amidst economic disruptions.
CEO Insights
Hichem M'Saad, the CEO of ASM, noted that customers are not only investing in current leading-edge technologies but are also preparing for future advancements. He mentioned that investments are being made in production lines for next-generation chips, which are anticipated to power products from companies like Nvidia and Apple.
Investment Trends
According to M'Saad, clients are increasing their spending on today's cutting-edge nodes while also initiating pilot-line investments for the upcoming 1.4nm node, expected to commence in the latter half of the year.
