The CEO of Dutch chipmaking giant ASML warned investors they needed to get used to more DeepSeek-style “elephants in the room” as he projected optimism days after China’s surprise AI chatbot caused turmoil for Western tech stocks.
I reiterate a 'Buy' rating for ASML with a one-year target price of US$864 per share, driven by AI's continued growth.
ASML’s market capitalization fell by more than 19 billion euros on Monday on concern that a new AI model by Chinese start-up DeepSeek (深度求索) can provide comparable performance to Western chatbots at a fraction of the price. ASML makes machines needed to produce some high-end chips that the Chinese company is barred from purchasing.
ASML's shares rose by more than 7% today and were up by 4.1% as of 11:03 a.m. ET.
ASML Holding N.V.'s complex, high-cost business model and reliance on a few partners are mitigated by secular trends and continuous R&D investment. Learn more on ASML stock here.
ASML shares have bounced back from the impact of DeepSeek. ASML predicts that low-cost AI models will boost demand for the firm's machines.
The company posted orders well above analysts’ expectations for the fourth quarter as chip makers scrambled to get their hands on machinery to produce increasingly sophisticated semiconductors.
DeepSeek’s much-hyped low-cost AI revolution could be a positive for companies supplying the tools for furthering the technology’s adoption,
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ASML’s Chief Executive Officer indirectly addressed the implications of DeepSeek in an interview with CNBC. He said, “A lower cost of AI could mean more applications. More applications mean more demand over time.