The Dutch semiconductor equipment giant ASML is navigating a period of extraordinary demand while simultaneously initiating a major corporate overhaul. Despite posting record-breaking orders and robust profits fueled by the global artificial intelligence boom, the company has announced a significant restructuring plan that includes workforce reductions. This move raises a strategic question: why is the tech leader streamlining operations at the peak of its growth cycle?
Financial Strength and Shareholder Returns
ASML’s formidable financial position is enabling substantial returns to its investors. The company has launched a share buyback initiative valued at 12 billion euros, scheduled to run through the end of 2028, with the first repurchases already executed in late January. Concurrently, the board plans to increase the dividend for the 2025 fiscal year by 17 percent, bringing the total payout to 7.50 euros per share.
Market analysts have responded favorably to these developments. Bernstein Research recently raised its price target to $1,911 and reaffirmed its “Outperform” rating. JPMorgan has also maintained its positive outlook on the equity. ASML shares are currently trading near $1,441, placing them within close range of the 52-week high of $1,455.
The AI-Driven Order Surge
The core driver behind this financial strength is a staggering influx of new orders. In the fourth quarter of 2025, ASML recorded new bookings worth 13.15 billion euros. A significant portion of this demand is for the company’s most advanced and complex machinery: Extreme Ultraviolet (EUV) lithography systems.
Should investors sell immediately? Or is it worth buying ASML?
This trend is directly linked to the expansion of AI data centers, which require powerful memory chips. This segment alone accounted for 56 percent of all new system orders. Company management interprets this as a clear signal that customers anticipate sustained high demand in the medium term.
Record Backlog and Efficiency Drive
The order momentum has propelled ASML’s total backlog to a historic 38.8 billion euros, providing exceptional visibility and planning security. For the 2026 fiscal year, the company is forecasting revenue in a range between 34 and 39 billion euros.
Paradoxically, alongside this expansion, ASML is embarking on a plan to become a leaner organization. The restructuring involves cutting approximately 1,700 positions, with a focus primarily on management roles. The stated objective is to enhance innovative capacity and refocus the company more intensely on technical development and engineering excellence.
Outlook and Strategic Balance
With a historic order book providing a solid foundation and a clear strategy for operational efficiency, ASML appears well-positioned. The key factors for its future share performance will be whether the AI-fueled demand in the semiconductor sector can maintain its current pace and how smoothly the internal restructuring is implemented. The company’s current actions reflect a strategic bet on sustaining long-term industry leadership, even at a moment of peak cyclical strength.
Ad
ASML Stock: Buy or Sell?! New ASML Analysis from February 3 delivers the answer:
The latest ASML figures speak for themselves: Urgent action needed for ASML investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 3.
ASML: Buy or sell? Read more here...
