ASML Raises 2026 Forecast Again on AI Chip Demand

ASML announced impressive second-quarter net sales of €9.3 billion, surpassing forecasts, and upgraded its full-year revenue outlook for the second time this year, driven by ongoing demand for advanced AI chips. The firm now anticipates net sales between €43 billion and €45 billion for 2026, with a gross margin of 54% to 56%, an increase from earlier projections of €36 billion to €40 billion and 51% to 53%. Net profit for the second quarter climbed to €2.9 billion, up from €2.3 billion the previous year, outpacing analyst predictions of €2.6 billion. CEO Christophe Fouquet credited growth to investments in AI and plans for capacity expansion. ASML intends to boost its 2026 low NA EUV capacity by 30% for 2027 and is considering a similar increase for 2028, alongside enhancements for deep ultraviolet immersion capacity. The company is nearing completion of all orders for its extreme ultraviolet lithography systems required for next year, with memory revenue projected to rise by 75% this year. ASML shares increased by approximately 3% on the announcement. China is expected to contribute around 20% of total net sales this year, while South Korea represented 43% of sales in the second quarter. Holding a near-monopoly on extreme ultraviolet lithography machines critical for advanced semiconductors, ASML has a Capital Markets Day scheduled for June 10, 2027.