Chip-Machine Supplier ASML Raises Guidance Again on Unrelenting AI Demand — 3rd Update

By Mauro Orru

ASML Holding lifted its annual guidance for the second time, a sign that companies are scrambling for its semiconductor-making tools as the race to build artificial-intelligence infrastructure turns chips into a hot commodity.

The Dutch group supplies machines that use light to print tiny patterns that form circuits inside modern semiconductors, making it a go-to for big chip makers like Taiwan Semiconductor Manufacturing Co., Samsung Electronics and Intel as they face growing demand from their own customers.

The race to build out AI infrastructure--backed by hundreds of billions of dollars in investments from some of the world's largest tech groups--has ushered in a scramble for the sophisticated chips needed to power data centers, with ASML reaping the benefits as chip makers need more of its machines to satisfy demand.

ASML said Wednesday that it was projecting annual sales between 43 billion and 45 billion euros, equivalent to a range of $49.11 billion to $51.39 billion, compared with prior guidance of 36 billion to 40 billion euros. Meanwhile, its gross margin--a closely watched metric of pricing power and profitability--is expected between 54% and 56% compared with 51% to 53% previously.

"AI-related investments and continued progress in AI technologies are driving demand for advanced logic and memory chips, further strengthening the semiconductor industry's growth outlook," Chief Executive Christophe Fouquet said.

Companies can't get enough memory and storage chips as AI demand pushed up their cost so much that Apple had to raise prices for some of its products. Executives at Micron Technology said last month that tight conditions would persist beyond 2027.

Fouquet said ASML's memory revenue should increase by 75% this year, underscoring appetite for equipment to make those chips. He said the company was close to receiving all the orders of extreme ultraviolet lithography systems it needs for next year and that it was looking to increase capacity so it could ship more machines to meet demand.

Extreme ultraviolet systems, or EUVs, are ASML's most advanced machines that are used to print the most intricate layers on chips. Intel uses the company's high-end systems to make some of its most advanced products. ASML executives are considering a roughly 30% boost to EUV output for 2027 and another 30% increase for 2028 as customers already placed a large number of orders for that year.

"Our customers, in turn, continue to accelerate their capacity expansion plans. This is translating into customer commitments across our product portfolio, providing ASML with increased visibility into longer-term demand. Our order intake remained extremely strong in the first half of the year," Fouquet said.

Fervor around AI and expectations that chips will remain in high demand have propelled global semiconductor stocks to new highs in recent months despite bouts of volatility as some investors worry that valuations and spending on a technology that hasn't yet yielded the expected benefits might be too high.

ASML solidified its lead as Europe's most valuable listed company, blowing past Wegovy maker Novo Nordisk, luxury giant LVMH Moet Hennessy Louis Vuitton and Germany's Volkswagen. ASML stock gained more than 68% since the year began and shares have more than doubled over the past 12 months.

ASML posted sales of 9.33 billion euros for the second quarter, up from 7.69 billion euros a year earlier. The figure is above analysts' forecast of 8.83 billion euros, according to Visible Alpha.

Net profit grew to 2.92 billion euros from 2.29 billion euros, beating market expectations. Gross profit increased to nearly 5.04 billion euros from 4.13 billion euros, generating a 54% margin that beat consensus and company guidance.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

July 15, 2026 02:24 ET (06:24 GMT)