ASML raises 2026 forecast on sustained AI chip demand
ASML raised its full-year revenue guidance Wednesday after beating first-quarter expectations, signaling that demand for semiconductors tied to artificial intelligence shows no signs of slowing.
The Dutch chipmaking equipment maker now expects 2026 net sales between 36 billion euros and 40 billion euros, up from its previous range of 34 billion to 39 billion euros. First-quarter net sales reached 8.8 billion euros against consensus expectations of 8.5 billion euros, while net profit hit 2.8 billion euros versus 2.5 billion euros expected.
Why ASML matters
ASML manufactures the machines that produce the world's most advanced semiconductors. Its performance serves as a barometer for chip industry health.
Customers are accelerating capacity expansion plans for 2026 and beyond, CEO Christophe Fouquet said. "Demand for chips is outpacing supply," he added in a statement.
Memory chips drive growth
Memory chip shortages have pushed component prices to record levels. AI systems and data centers depend heavily on memory, so South Korean manufacturers Samsung and SK Hynix are ramping production-work that requires ASML equipment.
Memory accounted for 51% of ASML's new tool sales in the first quarter, up from 30% in the previous quarter. South Korea represented 45% of sales, while Taiwan accounted for 23%.
Taiwan Semiconductor Manufacturing Co., one of ASML's largest customers, reported record first-quarter revenue last week as AI chip demand remained strong.
China headwinds persist
ASML faces export restrictions that prevent it from shipping advanced machines to China. Sales to Chinese customers fell to 19% of total sales in the first quarter from 36% in the December quarter.
A bipartisan group of U.S. lawmakers introduced legislation this month that would ban even ASML's less-advanced machines from export to China. The bill remains in the legislative process.
Order disclosure change
ASML stopped disclosing order numbers this quarter, a metric investors typically watch closely. Fouquet said order intake "continues to be very strong," though the company provided no specific figures.
Analysts said the market had already priced in ASML's 2026 growth projections. The company also projected it could deliver 80 of its low numerical aperture extreme ultraviolet lithography machines in 2027 if customer demand supports it-a figure that fell short of some investor expectations for 90 units.
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