ASML Holding, one of the key suppliers to computer chip makers, increased its financial forecasts today and said it would have revenue growth of around 11% annually up to 2030 amid booming demand for its products.
The company estimated its revenue would hit €24-30 billion in 2025 with gross margins up to 55%.
That compares with the previous forecast of a €15-24 billion range in the same year, at gross margins of at least 50%.
"Global megatrends in the electronics industry, supported by a highly profitable and fiercely innovative ecosystem, are expected to continue to fuel growth across the semiconductor market," ASML said in a statement.
ASML is operating at maximum capacity to supply major chip makers such as TSMC, Samsung and Intel.
"ASML and its supply chain partners are actively adding and improving capacity to meet this future customer demand," it said.
ASML makes lithography systems, large machines that use energy beams to map out the tiny circuitry of computer chips. Its most cutting-edge tools cost €160m each and sit at the heart of semiconductor fabrication plants.
At its second quarter earnings in July, ASML forecast a 35% increase in sales to nearly €19 billion in 2021, at gross margins of better than 50%, putting it past the lower end of its 2025 range of goals.
The company's stock has reflected its strong outlook with a market capitalisation of around €272 billion, making it Europe's largest technology company.
Even after a 7% fall it its share price amid yesterday's sell-off, ASML shares are up 67% in the year to date and more than 110% in the past year, strongly outperforming the sector.
