ASML Raises 2026 Sales Forecast as AI Chip Demand Surges

ASML, the Dutch semiconductor equipment giant, has raised its full-year 2026 revenue forecast after posting record third-quarter sales, fueled by accelerating artificial intelligence (AI) investments and growing demand for advanced chipmaking technology.

The company now projects annual net sales of €44 billion to €45 billion, compared with its previous guidance of €43 billion to €45 billion. ASML also expects its full-year gross margin to reach approximately 56%, reflecting strong demand for semiconductor manufacturing equipment.

Following the announcement on Wednesday, ASML shares climbed 2.5% in early Amsterdam trading as investors assessed the company's improved financial outlook and expanding AI-driven business opportunities.

ASML CEO Christophe Fouquet said semiconductor manufacturers continue to increase their equipment demand forecasts for the short and medium term. He attributed the stronger outlook primarily to expectations that global AI infrastructure investments will remain substantial for years.

Fouquet revealed that some customers have already expressed interest in securing chipmaking equipment deliveries for 2029 and 2030. However, ASML's existing production plans for 2027 and 2028 may not be sufficient to satisfy anticipated orders.

To address potential supply constraints, the company is exploring opportunities to expand its 2028 manufacturing capacity beyond its previously announced target of a 30% increase.

ASML's third-quarter financial results highlighted the strength of the semiconductor equipment market. Net sales reached a record €11.66 billion, rising from €9.33 billion in the second quarter.

Quarterly net income surged to €4.96 billion from €2.92 billion, while gross margin improved to 57.5% from 54%, demonstrating stronger profitability amid rising equipment demand.

Looking ahead, ASML forecasts fourth-quarter net sales between €14.2 billion and €15.2 billion, with an expected gross margin of approximately 57%.

Despite the positive earnings report, Jefferies analysts maintained a cautious outlook on ASML shares. They noted that increased demand expectations for 2027 and 2028 were already widely anticipated by investors.

The analysts also warned that declining valuation multiples across the semiconductor sector could limit further stock price gains.

Nevertheless, ASML's record quarterly performance and upgraded revenue guidance underscore the growing importance of advanced semiconductor manufacturing equipment as technology companies accelerate spending on AI infrastructure.