This company is seeing growth but expects a slowdown: what does this mean for the tech industry?
Company ASML, which specializes in key technologies for the production of advanced chips, posted a 30% increase in full-year revenue. However, the company warns that 2024 may bring revenue stagnation compared to 2023.
ASML's net sales were at EUR 7.2 billion, beating expectations of EUR 6.9 billion. This growth was accompanied by a similarly successful increase in net profit.
"We maintain our conservative view for the full year and expect revenue in 2024 to be similar to 2023. We also expect 2024 to be an important year to prepare for the significant growth we expect for 2025,"
Peter Wennink, CEO of ASML
This news comes at a time when the technology industry is under scrutiny due to the wider political and economic climate. Tensions between the U.S. and China over trade and technology may have implications for companies such as ASML.
Shares of $ASML-1.7% closed at €775.8 on Wednesday, up 9.7%, pushing the company's market capitalization above €300 billion for the first time.
Recent moves by the Dutch government to restrict some technology shipments to China illustrate the complexity of global technology trade. These restrictions may have implications for Chinese manufacturing plants and also affect $ASML'-1.7% s business .
The company said that sales to China, which is usually its third largest market after Taiwan and South Korea, will be affected by new export restrictions in 2024 in the US and the Netherlandswhich will affect up to 15% of their sales in China.
ASML expects some stagnation in 2024 and the overall outlook for the technology industry remains uncertain. Issues relating to trade, geopolitics and innovationwill be key factors influencing future developments in the industry.
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