(Bloomberg) — ASML Holding NV, the Dutch maker of advanced chip-making machines that are critical to the world’s supply chains, reaffirmed its bullish long-term revenue outlook as it bets on an artificial intelligence-driven boom in semiconductor demand.
Most Read from Bloomberg
The Dutch firm projected that sales in 2030 will range from €44 billion ($46 billion) to €60 billion, in line with its previous forecast, according to a statement issued as part of the company’s investor day on Thursday.
ASML is the only company in the world that makes the kind of lithography machines that help semiconductor companies in turn produce the advanced chips powering everything from Apple Inc.’s smartphones to Nvidia Corp.’s AI accelerators. As such, it is often viewed as a bellwether for the broader industry and an early indicator of global semiconductor demand.
“We confirm our capital allocation strategy, and expect to continue to return significant amounts of cash to our shareholders through a combination of growing dividends and share buybacks,” ASML Chief Financial Officer Roger Dassen said in the statement.
The company forecast a gross margin of between approximately 56% and 60% in 2030.
ASML’s order intake significantly missed analysts’ estimates in the third quarter, sparking a selloff in its shares and those of other chip-related businesses. The company also cut its sales outlook for next year. Chipmakers such as Nvidia have enjoyed a boom in demand for their AI chips. But sales to other key buyers, including automakers and mobile phone and PC manufacturers, have remained mired in a prolonged slump.
ASML shares are down 7.9% this year.
Also weighing on ASML’s prospects is the US government’s ongoing effort to limit China’s rise in the semiconductor sector, through repeated rounds of export controls that have targeted the sale of advanced artificial intelligence chips and chipmaking equipment. The Dutch government has struggled to find a middle ground between its US ally and ASML’s biggest market.
Due to the US pressure, ASML has never been able to sell its cutting-edge extreme ultraviolet lithography machines to the Asian nation and was restricted from shipping its second most-advanced tools from this year.
