ASML shares surged more than 3% on Wednesday after the Dutch lithography giant raised its 2026 sales forecast for the second time this year, driven by robust demand for artificial intelligence chips. The company also reported quarterly revenue and profit that exceeded analyst expectations as chipmakers accelerated spending on advanced production equipment.
The upgraded outlook reflects strong demand for tools used in AI processors, data centers, and high-bandwidth memory. ASML noted that customer orders remained elevated in the first half of 2026 as foundries and memory producers moved faster on capacity expansion plans.
ASML Raises Sales and Margin Guidance
ASML now expects 2026 net sales between €43 billion and €45 billion, up from its previous forecast of €36 billion to €40 billion. The company also lifted its gross margin range to 54%–56%, compared with the earlier 51%–53% guidance.
Second-quarter net sales reached €9.3 billion, above the €8.8 billion consensus estimate from LSEG analysts. Net profit came in at €2.9 billion, versus the €2.6 billion market forecast. Shares opened more than 7% higher before settling to a gain of about 3.4%.
CEO Christophe Fouquet described order intake as “extremely strong” during the first half and said customers are accelerating expansion plans across both logic and memory production. These commitments give ASML better visibility into demand through 2028.
ASML plans to increase its 2026 low-NA EUV capacity by 30% and boost its deep ultraviolet immersion capacity by the same margin. Both systems are manufactured at its facility in Veldhoven, Netherlands.
AI Spending Drives Equipment Orders
ASML holds a near-monopoly position in advanced chip production as the sole supplier of extreme ultraviolet lithography machines used to manufacture the most advanced semiconductors. Its customers include TSMC, Intel, SK Hynix, and Micron Technology.
Fouquet said stronger end-market demand encouraged customers to raise capital spending and bring forward expansion plans. “This has also translated practically into very strong order booking through the first half of 2026,” he said.
Orders for EUV systems now extend into 2028, reflecting sustained investment in AI servers, advanced processors, and memory chips. Chipmakers are also seeking faster productivity gains through upgrades to installed equipment.
TSMC, one of ASML’s largest customers, reported a 68% rise in June sales. The Taiwanese company is also preparing new advanced packaging plants to meet growing demand for AI chips and related services.
TSMC Earnings Draw Closer Scrutiny
ASML’s report arrives one day before TSMC is scheduled to release second-quarter results on July 16. Analysts expect TSMC to report earnings of $3.89 per share on revenue of $39.31 billion, based on consensus estimates.
Investors will focus on TSMC’s capital spending plans, its 2-nanometer production ramp, and demand for advanced packaging. ASML’s order strength suggests major customers are still committing funds to new capacity, though TSMC’s guidance will provide the next key update.
China remains an important market for ASML despite tighter export controls. The company still expects China to account for about 20% of annual sales. China’s share fell to 14% in the second quarter from 19% in the first quarter.
South Korea became ASML’s largest market during the quarter, contributing 43% of sales. The company plans to provide a broader update on long-term targets at its Capital Markets Day on June 10, 2027.