ASML Shares Surge on Bold Buyback Plan and Promising Revenue Forecasts

ASML has recently been making headlines due to its strategic financial maneuvers and optimistic long-term growth forecasts. The company announced plans to repurchase up to 10% of its issued share capital. This buyback plan is effective immediately and will run until October 23, 2026, pending supervisory board approval. ASML’s buyback is intended to be executed on the Euronext Amsterdam and Nasdaq stock exchanges within the price range between nominal value and 110% of the market price.

At the company’s recent annual shareholder meeting, authorization was also sought to issue ordinary shares or grant subscription rights. The capital raised from these initiatives is intended to support general corporate purposes, acquisitions, and strategic alliances. Shareholders were further informed of a proposed final dividend distribution of €1.84 per ordinary share as part of the company's efforts to maximize shareholder returns.

Furthermore, ASML confirmed its confidence in future revenue growth, attributing this to the burgeoning demand for semiconductors driven by AI advancements. The company reiterated its sales forecasts for 2030, anticipating revenues between €44 billion and €60 billion, in line with previous estimates. Chief Financial Officer Roger Dassen emphasized the company's commitment to returning significant capital to shareholders through increased dividends and stock buybacks, projecting a gross margin between 56% and 60% by 2030.

In strengthening investor confidence, ASML disclosed that orders for its EUV lithography machines are fully booked through its 2025 production capacity, and DUV orders are 90% secured. This bolsters confidence in meeting 2025 revenue targets, although the company remains cautious about revenue contributions from non-TSMC memory customers in 2025/26 due to uncertainties in customers' technology roadmaps and product certification timelines.