Nasdaq 100: ASML’s 9% Surge Lifts Nvidia, AMAT, and Semiconductor Stocks

ASML Surge Lifts Semis as Strong Orders Ease AI Demand Concerns

Dutch semiconductor giant ASML saw its shares jump 9% on Wednesday after reporting a massive surge in fourth-quarter net bookings, easing fears that China’s DeepSeek could slow AI-related chip demand. The company’s strong sales and profit beat expectations, reinforcing confidence in continued semiconductor investment despite recent market volatility.

Investors had been concerned that DeepSeek’s low-cost AI model could undercut spending on Nvidia GPUs, potentially reducing demand for ASML’s advanced chipmaking tools. However, ASML’s 169% jump in net bookings signaled robust demand, with management expressing optimism that lower AI costs will expand chip usage rather than shrink it.

Will ASML’s Strong Orders Drive a Semiconductor Rally?

ASML reported fourth-quarter net sales of €9.26 billion ($9.64 billion), surpassing expectations of €9.07 billion. Net profit came in at €2.69 billion, also above estimates. However, the standout figure was net bookings at €7.09 billion—well above the expected €3.99 billion—indicating strong future demand.

Extreme ultraviolet (EUV) tools, which are crucial for producing the most advanced chips, contributed €3 billion in bookings. This reassured traders that leading AI players, including Nvidia, Microsoft, and OpenAI, continue investing in high-end semiconductor technology despite concerns over DeepSeek’s disruption.

How Does DeepSeek Factor Into the AI Investment Picture?

DeepSeek’s recent rollout of its R1 reasoning model shook tech markets earlier in the week, triggering a broad semiconductor sell-off. The model, positioned as a cost-efficient alternative to OpenAI’s systems, raised questions about whether hyperscalers would scale back spending on expensive GPUs and chipmaking tools.

Despite these concerns, ASML CEO Christophe Fouquet remained confident that AI adoption will drive more semiconductor demand, not less. He emphasized that lower AI costs would lead to increased applications, fueling long-term chip growth. ASML has not received inquiries from customers regarding any potential slowdown tied to DeepSeek’s model.

How Are Other Semiconductor Stocks Reacting?

Following ASML’s strong earnings, semiconductor stocks showed signs of recovery. Nvidia, which had suffered a historic $600 billion market cap loss earlier in the week, also rebounded as fears of AI spending cuts eased.

Other chip equipment makers, including Applied Materials (AMAT) and Lam Research (LRCX), saw renewed interest as traders reassessed the strength of AI-related semiconductor demand. The broader Nasdaq, which had been pressured by the DeepSeek-driven sell-off, also regained ground.

What Should Traders Watch Next?

ASML maintained its 2025 revenue outlook of €30 billion to €35 billion, reinforcing confidence in sustained semiconductor investment. However, the company expects China’s demand to normalize this year after a surge in orders in 2023 driven by U.S. export restrictions.

Traders will now focus on upcoming earnings from Nvidia and other AI-heavyweights to gauge whether AI spending remains resilient. Additionally, market watchers will track whether DeepSeek’s emergence leads to any shift in capital expenditure trends among major tech players.

For now, ASML’s earnings have provided relief to semiconductor bulls, but volatility in the sector remains high as AI competition intensifies.

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