4 Green Flags for ASML's Future

ASML offered a big guidance boost for 2025 and beyond During ASML's previous investor day last September, the company said it would generate 24 billion to 30 billion euros in revenue in 2025, with a gross margin of 54% to 56%. It based those estimates on its "Low" and "High" scenarios for wafer demand across the semiconductor industry. ASML raised its 2025 guidance to 30 billion to 40 billion euros in revenue and kept its gross margin guidance at 54% to 56%. It also predicted that its annual revenue would reach 44 billion euros to 60 billion euros by 2030 with a gross margin of 56% to 60%. Motley Fool Returns Market-beating stocks from our award-winning analyst team. ASML generated 15% of its system sales in China last year, but it only sells its lower-end deep ultraviolet systems there. The Dutch government previously barred ASML from selling its EUV systems to China amid escalating concerns about Chinese chipmakers producing more-advanced chips. ASML CEO Peter Wennink said all those bans would only have a "Limited" impact on its system shipments in 2023 because it was only selling DUV systems in China. An expansion of its annual capacity In 2021, ASML sold 42 EUV systems, which cost $150 million to $200 million each and require multiple planes to ship. ASML has a new share buyback plan On top of all that rosy guidance, ASML announced a new share buyback plan of up to 12 billion euros, which will last through the end of 2025.