Chip machinery maker ASML said on Wednesday it had a record fourth quarter, with total net sales coming in at €9.3 billion, well above its own and analysts’ expectations.

In total, ASML booked net sales for 2024 at €28.3 billion and net income of €9.3 billion, and said it expected first-quarter 2025 sales to reach between €7.5 billion and €8 billion.

“The growth in artificial intelligence is the key driver for growth in our industry,” chief executive Christophe Fouquet said in a statement. “It has created a shift in the market dynamics that is not benefiting all of our customers equally, which creates both opportunities and risks, as reflected in our 2025 revenue range.”

The company expects major innovations will be needed to tackle the volume of electricity used by AI and the cost of its implementation.

ASML’s shares took a knock earlier this week with the launch of Chinese AI chatbot DeepSeek, which is said to be cheaper and to require fewer chips, but rose 11% in early trading on Wednesday.

Fouquet is expected to comment on the impact of DeepSeek when he addresses reporters later on Wednesday morning.