UPDATE 4-ASML Q3 bookings fuel tech recovery hopes

* Chip equipment maker swings to 20 mln eur net profit

* Q3 new machine bookings 777 mln eur, beating top f'cast

* Sees Q4 sales around 550 mln eur

* Echoes Tuesday's strong earnings from key client Intel

* Shares reverse gains, down 3.6 pct, off 23-month high

(Rewrites, adds fund manager comment, updates shares)

By Harro ten Wolde

AMSTERDAM, Oct 14 (Reuters) - ASML's (ASML.AS) ramped up third quarter order bookings well ahead of expectations as customers boosted investments but shares in the Dutch chip equipment maker reversed in late trading Wednesday as analysts said some of the good news was already priced into the stock.

Echoing strong earnings overnight from one of its main clients -- world No. 1 chip maker Intel (INTC.O) [ID:nLE575891] -- that fuelled hopes of a tech sector recovery, ASML (ASML.O) said it registered bookings for 35 new machines worth a combined 777 million euros ($1.2 billion).

That beat average expectations of 637 million euros and the highest forecast of 716 million euros in a Reuters poll. [ID:nL8238037]

ASML shares, which have gained almost 70 percent this year, rose 3.8 percent in early trade, hitting a 23-month high as one of the top gainers in the DJ Stoxx European technology index .SX8P.

But by 1421 GMT the shares were down 3.6 percent, lagging the index, which was up 1.6 percent.

Petercam analyst Eric de Graaf said end-demand for chips had not yet shown signs of fundamental improvement while Corne van Zeijl at SNS Asset Management said shares were down because large investors in the United States were taking profits.

"Everybody expected good results and now that is the case, the party is over," he said.

Intel's rosy outlook bolstered expectations of a sector-wide upturn, as did speculation on Wednesday that German tech and engineering conglomerate Siemens -- a bellwether of industry for Europe's largest economy -- might raise its guidance, traders said.

Evidence of a broader upturn came from China on Wednesday, when the world's third largest economy reported surprisingly strong September trade figures, with imports falling far less steeply than expected. [ID:nSP547839]