ASML raised its gross sales forecast for 2026 after it beat first-quarter income and revenue expectations, pushed by continued demand for chips associated to AI.
Here is how ASML did versus LSEG consensus estimates for the primary quarter:
- Web gross sales: 8.8 billion euros ($10.4 billion) versus 8.5 billion euros anticipated
- Web revenue: 2.8 billion euros versus 2.5 billion euros anticipated
The corporate beforehand forecast that its first-quarter gross sales could be between 8.2 billion euros and eight.9 billion euros.
The Dutch agency stated it now sees 2026 web gross sales to be between 36 billion euros and 40 billion euros, in comparison with a earlier forecast of 34 billion euros to 39 billion euros.
“The semiconductor trade’s development outlook continues to solidify, pushed by ongoing AI-related infrastructure investments,” ASML CEO Christophe Fouque stated in a press launch.
“Demand for chips is outpacing provide. In response, our prospects are accelerating their capability enlargement plans for 2026 and past, supported by long-term agreements with their prospects.”
The Dutch agency is usually seen as a bellwether for chip demand because it makes the instruments required to fabricate essentially the most superior semiconductors.
One in every of its high prospects, Taiwan Semiconductor Manufacturing Co. (TSMC), final week reported file first-quarter income as demand for AI chips continues to stay robust.
There’s a continued scarcity of reminiscence chips which has pushed costs of that part to unprecedented highs. Reminiscence is vital to AI methods and knowledge facilities. Because of this, South Korean companies Samsung and SK Hynix are planning to ramp up manufacturing capability, which would require ASML equipment.
ASML stated 51% of web gross sales of its new instruments within the first quarter went towards reminiscence, versus 30% within the earlier quarter. Prospects in South Korea accounted for 45% of gross sales, whereas these in Taiwan represented 23%.
Nonetheless, ASML is going through its personal challenges, together with headwinds in China, the place it’s not in a position to ship its most superior machines due to export restrictions. Earlier this month, a bunch of bipartisan U.S. lawmakers launched a legislation that might even ban ASML’s less-advanced machines for export to China. That legislation nonetheless must work its approach by means of the U.S. legislative course of.
System gross sales to China fell to 19% of general gross sales within the first quarter, in comparison with 36% within the December quarter.