(Bloomberg) -- ASM International NV’s orders beat estimates in the third quarter, as the artificial intelligence boom drives demand for the Dutch firm’s advanced chipmaking tools.
Orders increased 30% from a year earlier to €815.3 million ($881 million), ASM said in a statement on Tuesday. That compared to an average analyst estimate of €768 million in a Bloomberg survey.
ASM’s American depositary receipts rose 3.9% after the report. The stock rose 0.2% to close at €516.60 in Amsterdam trading on Tuesday before the results. The shares are up 9.9% so far this year.
The Almere-based ASM’s shares took a hit earlier this month after its compatriot ASML Holding NV cut its outlook. The bigger Dutch company reported orders for its advanced chipmaking machines had dramatically missed analysts’ estimates in the third quarter, sparking a broad selloff in the industry.
ASM has been benefiting from a strong demand for the so-called “gate-all-around” technology that boosts device performance and has become critical to AI chips.
It’s also had increased orders from China for its older tools. ASM previously warned that its sales to China would “drop in the second half compared to the exceptional level” in the first six months of the year.
Sales and orders in China “held up slightly better than expected” in the third quarter, Chief Executive Officer Hichem M’Saad said in the statement. The company expects a weaker demand from the Asian nation in the final three months of the year, he said.
M’Saad also cited sluggish recovery in personal computer and smartphone markets and a “a cyclical downturn” in automotive and industrial segments.
Even as companies like Taiwan Semiconductor Manufacturing Co. are getting a boost from the AI boom, other players in the chip sector, including automotive and industrial semiconductor makers, are facing a difficult period as clients with surplus inventory cut orders.
Intel Corp. has delayed planned European plants due to financial struggles, while Samsung Electronics Co. issued an apology to investors this month for its disappointing results.
More stories like this are available on bloomberg.com
©2024 Bloomberg L.P.
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess