ASML CEO Christophe Fouquet contends that the current surge in AI is not a speculative bubble, despite market volatility following the emergence of cheaper AI models like DeepSeek. Fouquet emphasizes that the underlying demand for AI is robust and enduring, comparing it to a "printing press of the AI age." He points out that ASML's extreme ultraviolet (EUV) lithography machines are indispensable for producing the advanced chips required by AI leaders like Nvidia, Amazon, and Anthropic, making the company a foundational beneficiary of the AI expansion.
Fouquet acknowledges the cyclical nature of the semiconductor industry but maintains that AI represents a long-term structural demand driver. He argues that reducing the cost of AI development, exemplified by DeepSeek, will actually broaden the adoption of AI, aligning with Moore's Law, which historically has reduced costs and expanded opportunities in technology. This increased accessibility, according to Fouquet, will ultimately lead to even greater overall demand for computing power, despite individual computations potentially becoming cheaper.
ASML's recent financial performance supports this optimistic outlook. The company reported a significant jump in fourth-quarter bookings for 2024, leading to a revised sales forecast of between €36 billion and €40 billion. Shares in ASML rebounded by nearly 9% after these results, offsetting earlier losses. Fouquet's confidence stems from the understanding that ASML, as a near-monopoly provider of critical chip manufacturing technology, stands to benefit regardless of which AI companies thrive, positioning it as an "agnostic royalty on AI demand."
