00:00Charlotte, you've had a chance to dig through these numbers. What do they tell us about the health of AI
00:04demand?
00:06Thanks, Lizzie. Yeah, it's an interesting set of results. Obviously, a reminder that this is the first quarter of results
00:12where ASML is not reporting its quarterly bookings figure.
00:16Now, that used to be the most heavily scrutinised figure by the market.
00:20So, you know, obviously, investors in the market are having to look at these set of results and they'll really
00:24be looking at ASML's own guidance.
00:26And as we saw, full year guidance, ASML have raised it. It's now, they now expect between 36 billion euros
00:33and 40 billion euros.
00:34They say that 2026 is a really strong year for us. I think the words were it's panning out very
00:39nicely.
00:40What they see is their customers at TSMC, Samsung, Hynix. These companies are really ramping up their assembly capacity.
00:49And actually, you know, the CEO is saying demand for AI chips is currently outstripping supply.
00:54So, you know, we've seen already since the start of the year a huge increase in capex spending from these
01:01chip makers.
01:02And of course, ASML is the only company that makes these advanced lithography machines that can make the highly sophisticated
01:09chips needed to power the AI boom.
01:12So what we're seeing is, you know, the demand for AI infrastructure, for data centres, you know, that is still
01:18very strong.
01:19You know, obviously, ASML's share price is already up 40 percent since the start of the year.
01:24So there's an extraordinary amount of optimism already baked in.
01:29So that could be, you know, part of the explanation why we're now seeing ASML cooled down this morning.
01:35It'll be interesting to see throughout the day, you know, during the analyst calls, the questions that ASML get about
01:42whether they can ramp up their own capacity,
01:45their own and, you know, how far along are they in meeting this extraordinary demand?
01:49And will there be any bottlenecks? I think that's going to be a key question as we go throughout the
01:53day.
01:55Charlotte, have we had much more information on how the U.S. government's new export curbs are going to affect
02:00ASML's business?
02:01That was definitely something we were watching for.
02:05Yeah, I mean, there wasn't a huge amount of commentary from ASML's management on this.
02:10The CFO, Roger Dasen, did say, you know, with this full year guidance of 36 to 40 billion euros for
02:162026, he said,
02:18we'll be able to accommodate any kind of further developments on those U.S. export calls.
02:23And we did see China net system sales fell to 19 percent of the total net system sales that ASML
02:31made this quarter.
02:31And that's down from 36 percent in the previous quarter.
02:34So sales to China have fallen.
02:38But, of course, you know, this legislation is in early stages.
02:43But, obviously, the company is watching closely.
02:46The market is watching closely because, you know, if it comes to implementation phase, then, you know, this could curtail
02:52ASML's sales to China.
02:56And that is still a key market for them, even though there are already significant restrictions on exports to China.
03:02ASML has never been able to sell its most advanced machines to China.
03:06But it's definitely something that the market will be watching.
Comments