Global Market: ASML raises 2026 outlook as AI boom drives strong earnings, plans capacity expansion

The world's largest supplier of semiconductor manufacturing equipment, ASML, has raised its financial outlook for 2026 after reporting stronger-than-expected second-quarter results, buoyed by surging demand for artificial intelligence (AI) chipmaking equipment, Reuters reported.

The Dutch company now expects net revenue of 43 billion euros to 45 billion euros in 2026, up from its previous forecast of 36 billion euros to 40 billion euros. The revised guidance implies around 16% growth at the midpoint, reflecting sustained investments by leading chipmakers in AI-related manufacturing capacity.

Quarterly Results Beat Estimates

For the quarter ended June 30, ASML posted revenue of 9.33 billion euros, surpassing analysts' expectations of 8.80 billion euros, according to LSEG data cited by Reuters.

Net income also exceeded forecasts, coming in at 2.92 billion euros, compared with the consensus estimate of 2.62 billion euros. The stronger-than-expected earnings prompted investors to push ASML shares 5.7% higher in early Amsterdam trading.

AI Demand Fuels Expansion Plans
The Dutch company has attributed its robust performance to accelerating demand for AI chips, with customers continuing to expand manufacturing capacity.

To meet growing demand, ASML plans to increase production capacity by 30% in each of the next two years for its flagship extreme ultraviolet (EUV) lithography systems. The company also intends to expand production of its deep ultraviolet (DUV) machines, which are widely used for manufacturing less advanced semiconductors and remain in demand from Chinese customers.

ASML is the only company globally capable of producing EUV lithography machines, which are essential for manufacturing the world's most advanced chips. Its customers include industry leaders such as TSMC, Samsung, SK Hynix and Micron.

Analysts See Improved Growth Outlook
Market analysts viewed the results as a significant positive for ASML's long-term growth prospects.

Analysts at JPMorgan said the company's updated guidance suggests substantially stronger growth than previously anticipated and could help narrow the valuation gap between ASML and major U.S. semiconductor equipment companies.

Intel to Use High-NA Technology
ASML also announced that Intel will deploy its next-generation High-NA EUV lithography system to manufacture certain versions of its upcoming Panther Lake processors, marking an important commercial milestone for the advanced chipmaking technology.

High-NA EUV machines are expected to play a critical role in producing future generations of smaller, more powerful semiconductor chips.

China Remains an Important Market
Despite ongoing U.S.-led export restrictions, China continues to be a significant contributor to ASML's business.

ASML 2026 outlook, ASML Q2 results, AI chipmaking equipment, EUV lithography systems, ASML share price, semiconductor equipment stocks, ASML China exports, High-NA EUV technology, ASML revenue guidance, TSMC Samsung SK Hynix chip demandChief Financial Officer Roger Dassen reaffirmed the company's expectation that Chinese customers will account for roughly 20% of total sales this year. While the percentage contribution has declined compared with previous years, overall sales to China are expected to rise in absolute terms as the company's total revenue grows.

ASML remains prohibited from selling its EUV systems and its most advanced DUV machines to China under export controls. However, it continues to supply less advanced DUV equipment, which Chinese chipmakers use to produce semiconductors for domestic applications, including AI, smartphones and computing.

The company also noted that proposed legislation in the United States could further tighten restrictions on semiconductor equipment exports to China, representing an ongoing business risk.