Europe's biggest company ASML lifts forecast, fuelling fresh hopes for the AI boom
Dutch semiconductor equipment maker ASML raised its full-year outlook after reporting better-than-expected second-quarter results, driven by strong demand for artificial intelligence (AI) systems, boosting optimism in the tech sector.
ASML, the largest company in Europe by market capitalization, announced better-than-expected second-quarter results on Wednesday and raised its full-year guidance. The Dutch semiconductor equipment maker now expects 2026 total net sales between €43 billion and €45 billion, with a gross margin between 54% and 56%. Previously, ASML had forecast net sales of €36-€40 billion and a gross margin of 51-53%.
For the three months from April to June, ASML reported total net sales of €9.3 billion, up from €7.7 billion in the same period last year. The gross margin stood at 54%, while net profit reached €2.9 billion, compared to €2.3 billion a year earlier. The results exceeded analysts' expectations, reflecting sustained demand for advanced semiconductor technologies.
ASML President and CEO Christophe Fouquet stated that “ongoing AI-related investments and continued progress in AI technologies are driving demand for advanced Logic and Memory chips, further strengthening the semiconductor industry's growth outlook.” He added that order intake remained extremely strong in the first half of the year, with customers accelerating their capacity expansion plans, providing ASML with increased visibility into longer-term demand.
ASML is the world's sole producer of extreme ultraviolet (EUV) lithography machines, essential for manufacturing the most advanced semiconductors. Due to strong demand, the company plans to boost production capacity by roughly 30% next year for both its EUV and older deep ultraviolet (DUV) systems. It is also considering a further 30% expansion in 2028 while broadening its machine upgrade business.
For the third quarter of 2026, ASML expects net sales between €11 billion and €12 billion.
The company has been caught in the crossfire of a tech spat between the United States and China. ASML previously warned that its Chinese sales would “decline significantly” this year. CFO Roger Dassen said ASML expects China to account for about 20% of its sales in 2026. Washington is leading efforts to curb high-tech exports to China over fears they could bolster the country's military, prompting Beijing to describe the measures as “technological terrorism”.
Last month, ASML denied reports of US concerns that one of its advanced chipmaking machines was in China, potentially violating restrictions. In January, ASML announced an organisational shake-up expected to result in the loss of around 1,700 jobs in the Netherlands and the United States, mainly from leadership roles. The firm employs roughly 44,000 staff worldwide.
