ASML shares rose more than 3% on Wednesday after the Dutch chip equipment maker raised its 2026 sales forecast for the second time this year. The company also reported quarterly revenue and profit above market estimates as chipmakers increased spending on advanced production tools.
The update points to demand for equipment used in AI processors, data centers, and high-bandwidth memory. ASML said customer orders stayed strong during the first half of 2026 as foundries and memory producers moved faster on capacity plans.
ASML now expects 2026 net sales between €43 billion and €45 billion. Its earlier forecast called for sales between €36 billion and €40 billion. The company also raised its gross margin range to 54% to 56%, from 51% to 53%.
Second-quarter net sales reached €9.3 billion, above the €8.8 billion expected by analysts surveyed by LSEG. Net profit came in at €2.9 billion, compared with the €2.6 billion market forecast. Shares opened more than 7% higher before trimming gains to about 3.4%.
Chief Executive Christophe Fouquet said order intake was ‘extremely strong’ during the first half. He added that customers were accelerating expansion plans across logic and memory production. Those commitments gave ASML better visibility into demand through 2028.
ASML plans to increase its 2026 low-NA EUV capacity by 30%. It will also add 30% to its deep ultraviolet immersion capacity. The company produces both systems at its site in Veldhoven, Netherlands.
ASML holds a central position in advanced chip production. It is the only supplier of extreme ultraviolet lithography machines used to make the most advanced semiconductors. Its customers include TSMC, Intel, SK Hynix, and Micron Technology.
Fouquet said stronger end-market demand had encouraged customers to lift capital spending and bring forward expansion plans. “This has also translated practically into very strong order booking through the first half of 2026,” he said.
Orders for EUV systems now extend into 2028. That longer order window reflects continued investment in AI servers, advanced processors, and memory chips. Chipmakers also seek faster productivity gains from upgrades to installed equipment.
TSMC, one of ASML’s largest customers, reported a 68% rise in June sales. The Taiwanese company is also preparing new advanced packaging plants as demand grows for AI chips and related services.
ASML’s report arrives one day before TSMC is due to release second-quarter results on July 16. Analysts expect TSMC to report earnings of $3.89 per share and revenue of $39.31 billion, based on consensus estimates.
Investors will watch TSMC’s capital spending plans, its 2-nanometre production ramp, and demand for advanced packaging. ASML’s order strength suggests major customers are still committing funds to new capacity, though TSMC’s guidance will provide the next update.
China is an important market for ASML despite tighter export controls. The company still expects China to account for about 20% of annual sales. China’s share fell to 14% in the second quarter from 19% in the first quarter.
South Korea became ASML’s largest market during the quarter, contributing 43% of sales. The company plans to provide a broader update on long-term targets at its Capital Markets Day on June 10, 2027.