ASML raises 2026 guidance as AI chip demand stays strong

ASML It raised its 2026 sales forecast after beating first-quarter revenue and profit expectations due to continued demand for AI-related chips.

ASML’s performance in the first quarter relative to LSEG consensus estimates is as follows:

• Net sales: 8.8 billion euros ($10.4 billion) compared to 8.5 billion euros expected
• Net profit: 2.8 billion euros versus 2.5 billion euros expected

ASML had previously forecast first-quarter sales of between 8.2 billion euros and 8.9 billion euros.

The Dutch firm said it forecasts 2026 net sales to be between 36 billion euros and 40 billion euros, compared to a previous forecast of 34 billion to 39 billion euros.

“The semiconductor industry’s growth outlook continues to solidify, driven by ongoing AI-related infrastructure investments,” ASML CEO Christophe Fouque said in a press release. he said.

“Demand for chips is outpacing supply. In response, our customers are accelerating capacity expansion plans for 2026 and beyond, supported by long-term agreements with their customers.”

The Dutch firm is often seen as a pioneer in chip demand because it produces the tools needed to produce the most advanced semiconductors.

One of your best customers, Taiwan Semiconductor Manufacturing Company. (TSMC) reported record first-quarter revenue last week as demand for artificial intelligence chips remained strong.

An ongoing shortage of memory chips has pushed prices of that component to unprecedented levels. Memory is key to AI systems and data centers. As a result, South Korean companies Samsung and SK Hynix plan to increase production capacity, which will require ASML machines.

ASML said 51% of net sales of its new vehicles in the first quarter went to memory, compared to 30% in the previous quarter. Customers in South Korea accounted for 45% of sales, and customers in Taiwan accounted for 23%.

But ASML faces its own challenges, including headwinds in China, where it cannot ship its most advanced machines due to export restrictions. Earlier this month, a group of bipartisan U.S. lawmakers introduced legislation that would ban even the export of ASML’s less advanced machines to China. This legislation still needs to work its way through the U.S. legislative process.

System sales to China fell to 19% of total sales in the first quarter, compared to 36% in the December quarter.