ASML sees record orders extending into 2030
ASML reported unusually strong demand from customers like TSMC and Intel, with orders placed for 2029 and partially for 2030. Production capacity remains constrained to roughly 30% annual growth, limiting the company's ability to meet this surge.
ASML reported extremely strong demand from major customers, including TSMC and Intel, with orders placed not just for 2028 but also for 2029 and partially for 2030. This forward-looking order book is unusual for the industry. Despite this demand, ASML's production capacity is constrained by the complexity of its machines, limiting growth to approximately 30% annually, though the company is exploring ways to exceed this rate. ASML has completed a new round of price negotiations, which is crucial for growth given these production limits. The stock has risen about 60% this year but only 15% in the last six months. Investors remain cautious because the current growth rate may not justify a higher valuation when accounting for potential downcycles in coming years.