ASML On Wednesday, the company raised its earnings outlook for the second time this year as customers continue to ramp up production of AI chips.
The Dutch semiconductor equipment maker said it expects full-year sales of 43 billion euros ($49 billion) to 45 billion euros and gross profit margins of 54% to 56%. The company had previously expected annual net sales of 36 billion to 40 billion euros and gross profit margins of 51 to 53 percent.
Here’s a comparison of ASML and LSEG consensus forecasts for Q2.
Net sales: 9.3 billion euros against expectations of 8.8 billion euros Net profit: 2.9 billion euros against expectations of 2.6 billion euros
ASML — Europe’s most valuable company — is the only company in the world that manufactures extreme ultraviolet (EUV) lithography equipment used in the production of cutting-edge semiconductors.
CEO Christophe Fouquet said order intake remained “very strong” in the first half of the year. This momentum means the company is targeting a 30% increase in low NA EUV capacity in 2026 and a 30% increase in deep ultraviolet (DUV) immersion capacity in 2026, he said.
chip expansion push
ASML had already raised its outlook last quarter due to continued demand for its top-of-the-line EUV equipment. This number is expected to remain high as chipmakers expand production capacity to meet the needs of the AI boom.
CEO Fouquet said in a statement Wednesday that the company’s customers continue to “accelerate their capacity expansion plans.” “This is reflected in customer commitment across our product portfolio, giving ASML increased visibility into long-term demand.”
Taiwan Semiconductor Manufacturing Co. (TSMC), one of ASML’s biggest customers, reported earlier this week that its sales rose 68% in June on strong demand for its chips.
TSMC plans to add two advanced chip packaging plants to Chiayi Science Park in southern Taiwan, Reuters reported, citing Taiwan’s National Science and Technology Commission Minister Wu Cheng-wen on Sunday.
Analysts at UBS said in a July 10 note that they expect an increase in semiconductor manufacturing facilities and AI-driven demand for cutting-edge chip production to drive ASML’s strong second half of the year.
Semiconductor stocks are under pressure as investors question whether they can sustain massive AI-driven capital spending despite strong demand. ASML also faces increased export restrictions on advanced chip equipment.
The company said it will provide an update on its long-term goals at its Capital Markets Day on June 10 next year.
