Chip-Machine Supplier ASML Boosts Guidance for Third Time on Surging AI Demand — 3rd Update

By Mauro Orru

ASML Holding improved its annual forecasts for the third time this year and said it was looking at ways to boost production of its semiconductor-making machines even more as the race to build artificial-intelligence infrastructure fuels demand for advanced chips.

The Dutch group is projecting annual sales between 44 billion euros and 45 billion euros, equivalent to a range of $49.27 billion to $50.39 billion, compared with prior guidance of 43 billion euros to 45 billion euros. Meanwhile, its gross margin--a closely watched metric of pricing power and profitability--should come in at roughly 56%, compared with a previous guidance range of 54% to 56%.

The revisions show how much ASML's fortunes have come to benefit from the build-out of data centers that turned chips into a red-hot commodity. Surging semiconductor demand means that ASML's clients like Taiwan Semiconductor Manufacturing Co., Samsung Electronics and Intel will need more of its machines so they can produce enough chips.

ASML shares in Amsterdam gained more than 2% in European morning trading, consolidating ASML's lead as Europe's most valuable listed company. Its stock is up more than 80% over the past 12 months on a wave of investor fervor around AI and expectations that chips and semiconductor-making tools will remain in high demand for years to come.

"Our customers continue to increase their short- and medium-term equipment demand forecasts with us, driven primarily by their views on the size and duration of AI-related investments. In light of their demand visibility, some customers are expressing an interest in placing orders with us for 2029 and even 2030," ASML Chief Executive Christophe Fouquet said.

AI demand pushed up the cost of certain types of chips as companies hoard semiconductors to power data centers, leading to a supply squeeze. Micron Technology Chief Executive Sanjay Mehrotra said last month that supplies of memory and storage chips would be much tighter in the coming years.

In a bid to cash in on that tightness, ASML is seeking to increase production of its deep ultraviolet lithography tools as well as its more advanced extreme ultraviolet systems. In July, it had earmarked a 30% boost in 2027 and another 30% in 2028. However, Fouquet said it was becoming clear that wouldn't be enough to meet demand and that ASML was looking at ways to bolster capacity even more, especially for 2028 and beyond.

Earlier this year, ASML executives alluded to the possibility of price increases, saying that a tight chip market gave ASML more negotiating power. Finance chief Roger Dassen said that while the company had now completed conversations with key customers, the effect of higher prices wouldn't show on 2026 figures. "It will start to become visible partly in the course of 2027. The full impact of that you will start to see in 2028 and beyond," he said.

ASML posted sales of 11.66 billion euros for the third quarter, up from 7.52 billion euros a year earlier. The figure is slightly lower than analysts' forecast of 11.71 billion euros, according to Visible Alpha.

Net profit climbed to 4.96 billion euros from nearly 2.13 billion euros a year earlier, beating market expectations. Gross profit increased to 6.70 billion euros from 3.88 billion euros, generating a 57.5% margin that beat consensus and company guidance.

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

(END) Dow Jones Newswires

October 14, 2026 03:35 ET (07:35 GMT)