ASML is kicking off tech earnings. Here's what to expect from Europe's biggest semiconductor supplier.

By Nora Redmond

Analysts expect ASML's revenue in its second quarter to rise by almost 15% year-over-year to EUR8.81 billion, or $10.1 billion.

Second-quarter earnings season is kicking off, and semiconductor heavyweight ASML Holding NV is set to begin the technology sector.

Semiconductor-equipment manufacturer ASML (NL:ASML) is scheduled to report its results for the quarter through the end of June before the opening bell in Amsterdam on Wednesday. Analysts are expecting revenue to rise by close to 15% year-over-year to EUR8.81 billion, or $10.1 billion, according to the London Stock Exchange Group.

It comes after a stellar first half of the year for semiconductor stocks amid a boom in spending for the build-out of artificial intelligence, with the PHLX Semiconductor Index SOX up more than 80% since the start of the year.

Shares in the Dutch company, which is the only one worldwide that develops the extreme ultraviolet lithography machines needed to power microchips, have soared about 70% in the same period in Amsterdam, making it Europe's most valuable company by market capitalization, at 599 billion euros ($685 billion), according to FactSet data. In New York, the stock (ASML) is up 68% since the beginning of January.

Analysts foresee earnings per share growing by 15% compared with this time last year to EUR6.80 ($7.77) in the second quarter.

Analysts at Morgan Stanley, led by Lee Simpson, said there are three debates surrounding ASML to focus on this summer. The market is looking for updated information on capacity growth, they noted, with the investment bank expecting ASML to signal an ability to meet demand for about 90 of its standard extreme ultraviolet lithography machines. The analysts forecast a boost in sales from Chinese memory chip makers and a potential for the company to raise prices if it continues accelerating updates to its tech.

Mark Lipacis and Vedvati Shrotre, analysts at Evercore ISI, wrote in a note on Sunday that "the fundamental backdrop remains strong" for companies that provide the machines required to build chips.

They noted that revenue could increase to between EUR52 billion ($59 billion) and EUR54 billion ($62 billion) next year if ASML can sell 90, or in the best case 100, of its machines - which would mark a rise of about 90% in revenue in two years.

Deutsche Bank expects ASML to increase its capacity to over 100 tools during 2028, bringing earnings per share to EUR60 ($68.57) that year, good for a 150% jump in three years. However, it doesn't see an announcement for increased capacity coming until the third quarter.

ASML counts Intel (INTC), Samsung Electronics (KR:005930) and Taiwan Semiconductor Manufacturing Corp., or TSMC (TW:2330), as its biggest customers, per the Veldhoven, Netherlands-headquartered company's website.

TSMC is due to follow ASML in reporting its earnings for the most recent quarter on Thursday. The chip giant said on Monday that its revenue for June rose 67% year-over-year to 442.68 billion new Taiwanese dollars, or $13.2 billion - marking the best month for the company in terms of revenue.

-Nora Redmond

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

07-13-26 0755ET