(Bloomberg) — ASM International NV’s orders exceeded expectations in the third quarter, fueled by the surge in artificial intelligence demand for the company’s advanced chipmaking equipment. The company reported a 30% rise in orders compared to the previous year, reaching €815.3 million ($881 million), according to a statement released on Tuesday. This is in contrast to an average analyst prediction of €768 million found in a Bloomberg survey. Following the report, ASM’s American depositary receipts increased by 3.9%. The stock increased by 0.2% to finish at €516.60 in Amsterdam trading on Tuesday prior to the results. The shares have increased by 9.9% this year. Earlier this month, the Almere-based ASM’s shares fell after ASML Holding NV, another Dutch company, lowered its projections. The larger Dutch firm announced that orders for its sophisticated chipmaking equipment fell significantly short of analysts’ predictions in the third quarter, leading to a widespread selloff in the sector. ASM is enjoying high demand for its “gate-all-around” technology, which enhances device performance and has become essential for AI chips. Additionally, it has received more orders from China for its older machinery. ASM had earlier indicated that its sales to China would decline in the latter half of the year compared to the remarkable figures seen in the first half. However, Chief Executive Officer Hichem M’Saad noted in the statement that sales and orders in China performed a bit better than anticipated in the third quarter. The company anticipates lower demand from the Asian country in the last quarter of the year, according to him. M’Saad also noted a slow recovery in the personal computer and smartphone markets, along with a “cyclical downturn” in the automotive and industrial sectors. While companies such as Taiwan Semiconductor Manufacturing Co. are benefiting from the AI surge, other chip industry participants, particularly those in the automotive and industrial semiconductor sectors, are experiencing a tough time as clients with excess inventory reduce their orders. Intel Corp. has postponed intended European plants because of financial difficulties, while Samsung Electronics Co. apologized to investors this month for its unsatisfactory results. More similar stories can be found on bloomberg.com.
