ASML Lifts 2026 Forecast as AI Demand Fuels Expansion

ASML reported second-quarter revenue of 9.33 billion euros, comfortably exceeding the 8.80 billion euros anticipated by analysts. Net income reached 2.92 billion euros, driving shares up nearly 6 percent in Amsterdam. This performance shift prompted management to hike its 2026 revenue guidance to a range of 43 billion to 45 billion euros, a notable increase from the previous 36 billion to 40 billion euro target.

To keep pace with this trajectory, the company plans to expand its manufacturing capacity by 30 percent annually over the next two years. This push covers both its proprietary Extreme Ultraviolet (EUV) systems—essential for the world’s most advanced chips—and its Deep Ultraviolet (DUV) machines. Chief Executive Christophe Fouquet noted that customers are accelerating long-term investment plans, with Intel specifically incorporating ASML’s latest High NA EUV technology into its next-generation Panther Lake processors.

While the company faces geopolitical headwinds, China remains a vital market, expected to account for roughly 20 percent of total sales this year. Although export restrictions prevent the sale of top-tier EUV technology to Chinese firms, demand for less advanced lithography systems remains robust. Despite the uncertainty surrounding potential further US export controls, ASML’s expanded order book suggests that the industry’s largest players, including TSMC, Samsung, and SK Hynix, are committing to years of sustained production growth.