ASML Holding NV has raised its annual sales forecast for the second time this year, driven by surging artificial intelligence spending. According to reports from CNBC TV18 and Reuters, the Dutch company forecast net sales to grow to between €43 billion ($49.2 billion) and €45 billion this year, up from its previous forecast of €36 billion to €40 billion announced in April. The company's shares have surged 69% this year on anticipation of continued AI-driven demand for its chip-making machines, with latest reports confirming a 5.7% jump in early Amsterdam trading following the Q2 results announcement. The revised guidance implies around 16% growth at the midpoint, reflecting sustained investments by leading chipmakers in AI-related manufacturing capacity.
ASML reported net sales of €9.33 billion for the second quarter, surpassing analyst expectations of €8.80 billion according to Reuters citing LSEG data. As reported by CNBC TV18, CEO Peter Fouquet stated that "Our order intake remained extremely strong in the first half of the year." The company's strong performance reflects the surge in AI spending that is driving demand for advanced semiconductor manufacturing equipment. Latest figures show gross profit of €5.035 billion with a gross margin of 54.0%, up from the prior range of 51% to 52%. Net income reached €2.92 billion, exceeding the consensus estimate of €2.62 billion, demonstrating strong profitability beyond revenue growth.
ASML serves as a linchpin in the semiconductor supply chain as the only maker of sophisticated lithography machines crucial for manufacturing advanced semiconductors, including Nvidia Corp. chips used in AI data centers. According to CNBC TV18 and Reuters, technology companies including Microsoft Corp. and Alphabet Inc. are leading AI infrastructure investments, channelling hundreds of billions into securing advanced AI capabilities. Latest management commentary confirms that ongoing AI investments and progress in AI technology are strengthening demand for advanced logic and memory chips. Chipmakers are rushing to add manufacturing capacity to meet this growing demand, with customers accelerating capacity-expansion plans and making commitments across ASML's product portfolio. The company's customers include industry leaders such as TSMC, Samsung, SK Hynix and Micron.
ASML is targeting capacity of about 65 units for its second-most advanced tool, the low NA EUV, this year, higher than prior projections. As reported by CNBC TV18 and Reuters, the company outlined plans to increase capacity by 30% for 2027, with ASML "investigating" increasing capacity with another 30% the following year. The company also announced that Intel Corp. will deploy its next-generation High-NA EUV lithography system to manufacture certain versions of its upcoming Panther Lake processors, marking an important commercial milestone for the advanced chipmaking technology. Latest capacity planning indicates 2026 capacity of roughly 65 systems, with plans to add 30% to that level for 2027 and investigating another 30% increase for 2028. These percentages refer to capacity plans, not a promise that every added unit will immediately ship or be recognized as revenue.
Despite ongoing U.S.-led export restrictions, China continues to be a significant contributor to ASML's business. According to Reuters, Chief Financial Officer Roger Dassen reaffirmed the company's expectation that Chinese customers will account for roughly 20% of total sales this year. While the percentage contribution has declined compared with previous years, overall sales to China are expected to rise in absolute terms as the company's total revenue grows. ASML remains prohibited from selling its EUV systems and its most advanced DUV machines to China under export controls, but continues to supply less advanced DUV equipment for Chinese chipmakers to produce semiconductors for domestic applications including AI, smartphones and computing. The company also noted that proposed legislation in the United States could further tighten restrictions on semiconductor equipment exports to China, representing an ongoing business risk.
