ASML Dominates China’s Semiconductor Surge But What Lies Ahead? 

 ASML Holding NV reported its first-quarter 2025 results, reflecting strong financial performance but also heightened market uncertainty driven by newly announced tariffs. The company’s total net sales reached €7.74 billion, slightly below analysts’ expectations of €7.77 billion, although up from €5.29 billion a year earlier. Net system sales contributed €5.7 billion, with €3.2 billion from Extreme Ultraviolet (EUV) systems and €2.5 billion from non-EUV systems, while Installed Base Management sales totaled €2 billion. Gross margin exceeded internal expectations at 54%, driven by productivity improvements and a favorable product mix. Net profit for the quarter rose to €2.36 billion, beating analysts’ forecasts, and earnings per share were €6. Cash, cash equivalents, and short-term investments stood at €9.1 billion at quarter-end, but free cash flow was negative €475 million due to investment outflows and customer payment timings. Net bookings were €3.94 billion, a significant decline from €7.09 billion in the prior quarter, with €1.2 billion attributable to EUV systems. Despite typically volatile bookings, the trailing 12-month data shows system sales exceeded bookings by 21%, indicating backlog depletion. This trend, combined with tariff concerns, has raised investor unease.