ASML, the Dutch semiconductor-equipment maker and Europe's most valuable company, raised its full-year sales guidance for the second time this year, citing strong demand for AI chips from its customers [1]. The company now expects 2026 net sales between 43 billion euros ($49 billion) and 45 billion euros, up from its previous forecast of 36 billion to 40 billion euros. Gross margin guidance was also increased to a range of 54% to 56%, compared to the earlier 51% to 53% [1].
For the second quarter, ASML reported net sales of 9.3 billion euros, surpassing the LSEG consensus estimate of 8.8 billion euros, and net profit of 2.9 billion euros, ahead of the expected 2.6 billion euros [1]. CEO Christophe Fouquet highlighted that order intake remained 'extremely strong' in the first half of the year, prompting the company to target a 30% increase in both its 2026 low NA EUV and DUV immersion capacity [1].
The ongoing AI boom is driving chipmakers to expand production capacity, with ASML's customers accelerating their expansion plans and making commitments across the company's product portfolio. This has provided ASML with increased visibility into longer-term demand [1]. Taiwan Semiconductor Manufacturing Co (TSMC), one of ASML's largest customers, recently reported a 68% jump in June sales, attributed to strong chip demand, and is planning to add two advanced chip packaging plants in southern Taiwan [1].
UBS analysts noted that the expansion of semiconductor fabrication facilities and AI-driven demand for advanced chip production are expected to support a stronger second half for ASML [1]. However, despite robust demand, semiconductor stocks have faced pressure as investors question the sustainability of AI-driven capital spending. ASML also faces tightening export controls on its advanced chip equipment [1]. The company announced it will provide an update on its longer-term goals at a Capital Markets Day on June 10 next year [1].
CONCLUSION
ASML's second upward revision of its sales forecast this year underscores the strong momentum in AI chip demand and capacity expansion among its customers. While the outlook remains positive, with expectations for a stronger second half, the company faces ongoing challenges from investor skepticism and tightening export controls. ASML plans to clarify its long-term strategy at its Capital Markets Day in June 2027.