ASML, the leading supplier of chipmaking equipment, reported fourth-quarter bookings of €7.09 billion ($7.39 billion) on Wednesday, surpassing analyst expectations as demand for AI-driven semiconductor production continues to rise.

The surge in orders is expected to reassure investors concerned about recent volatility in chip stocks, triggered by DeepSeek’s new AI model, which requires less computing power than competitors. ASML shares rose 11% to €722 in early trading.

Analysts had projected bookings of €3.99 billion, significantly lower than the reported figures and up from €2.63 billion in Q3 2024. “The growth in artificial intelligence is the key driver for growth in our industry,” ASML CEO Christophe Fouquet said.

ASML reported Q4 net income of €2.7 billion on sales of €9.3 billion, beating expectations. The company reaffirmed its 2025 revenue forecast of €30-35 billion, a 7-25% increase from 2024’s €28.3 billion.

While AI chip demand drives spending by key customers like TSMC and SK Hynix, Intel and Samsung have faced challenges. The US was ASML’s largest market in Q4, accounting for 28% of sales, slightly ahead of China.

However, ASML expects China’s share to drop to 20% in 2025 following a major expansion in 2024 despite export restrictions imposed by the US and Dutch governments.