ASML Holding NV surged the most since 2020 after booking orders worth twice as much as analysts expected, as the artificial intelligence boom fuels demand for its chipmaking machines.

The CEO of Dutch chipmaking giant ASML warned investors they needed to get used to more DeepSeek-style “elephants in the room” as he projected optimism days after China’s surprise AI chatbot caused turmoil for Western tech stocks.

The artificial intelligence boom is a two-edged sword for $290 billion ASML . Shares in the Dutch maker of lithograph machines used to make chips soared by 8% on Wednesday thanks to booming demand from semiconductor manufacturers such as TSMC .

Without addressing the specifics of DeepSeek’s model, ASML CEO Christophe Fouquet told CNBC he sees no sign of a slowdown in demand for AI chips.

ASML Holding N.V.'s complex, high-cost business model and reliance on a few partners are mitigated by secular trends and continuous R&D investment. Learn more on ASML stock here.

ASML's shares rose by more than 7% today and were up by 4.1% as of 11:03 a.m. ET.

ASML's valuation reflects potential for substantial growth and profitability, making it attractive at current levels. Click here to find out why ASML stock is a Buy.

ASML chief executive says lower-cost AI models will boost chip demand. He doesn't see DeepSeek as a threat for AI hyperscalers either.

Chinese companies have made technological leaps that have surprised observers despite attempts by the US to stifle Beijing’s ambitions.

ASML, a Dutch manufacturer of semiconductor equipment, anticipates that new low-cost versions, such as the one introduced by China’s DeepSeek, would increase rather than decrease demand for AI chips.

Despite a dip in annual net profit, ASML maintained its 2024 sales forecast. China accounted for 27% of Q4 sales but is expected to decline. Market jitters over China’s DeepSeek AI model and U.S. trade restrictions sent ASML’s valuation down €19 billion.