ASML raises sales forecast for second time as AI chip demand pushes production limits

ASML raises forecasts as AI boom drives chipmaking demand

Company to increase production capacity of its most advanced lithography machines ASML raised its annual sales outlook for the second time this year, as surging demand for AI computing power drove better-than-expected sales for the world's leading maker of chip manufacturing equipment. The Netherlands-based group said on Wednesday it now expects total net sales of between €43bn and €45bn, well ahead of analysts' forecasts of €39.6bn, according to S&P Visible Alpha. The bullish outlook came as it reported 21 per cent year on year growth in sales to €9.3bn in the second quarter, surpassing forecasts, as customers upgraded their existing equipment. Net income of €2.9bn also beat analyst forecasts of €2.6bn. Christophe Fouquet, ASML's chief executive, said the company plans to increase production capacity of its most advanced "extreme ultraviolet" lithography machines by 30 per cent next year and is considering a similar increase in 2028, as the semiconductor industry races to expand production. ASML is already "close to [receiving] all the EUV orders we need for 2027", he added. ASML's role at the centre of the global chipmaking industry has made it Europe's biggest winner from the AI boom and turned it into the region's most valuable company, with a market value in excess of €600bn. The company can produce only a few dozen of its complex "extreme ultraviolet" lithography machines a year. ASML's ability to produce enough of the complex machines has been seen by some in Silicon Valley as a potential throttle on the AI industry's growth, which is underpinned by chips such as Nvidia's graphics processing units. Fouquet said that the latest quarter's performance reflected "continuous, very strong demand from our customers" as well as the company's ability to meet that demand. Revenue from customers making memory chips, whose producers have seen extraordinary stock price gains in recent months, is now projected to increase by 75 per cent this year. Its latest results follow strong indications of demand from two of its biggest customers this week. Intel said it plans a €5bn investment to expand its production capacity in Ireland and Taiwan Semiconductor Manufacturing Company reported a 36 per cent rise in quarterly sales. ASML said on Wednesday that Intel had begun to deploy its latest chipmaking machine, dubbed "High NA" EUV, in production -- a key milestone for a product that sells for as much as $400mn.

ASML tops Q2 estimates on AI chip demand

July 15 (Reuters) - ASML (ASML.AS), opens new tab, the world's biggest supplier of equipment used to manufacture computer chips, on Wednesday reported better-than-expected second-quarter revenue and profit, as demand from makers ⁠of artificial intelligence chips offset uncertainty over sales to China. Revenue for the three months ended June 30 was 9.33 billion euros ($10.90 billion), compared with ⁠the 8.80 billion euros expected by analysts, according to LSEG median estimates. ⁠Net income was 2.92 billion euros, compared with the ⁠2.62 billion euros expected, according to LSEG ⁠data. Reporting by Toby Sterling in Amsterdam, Nathan Vifflin in Gdansk, editing by Our Standards: The Thomson Reuters Trust Principles., opens new tab

ASML hikes sales forecast for second time this year on strong AI chip demand

It previously predicted annual net sales of between 36 billion and 40 billion euros, and a gross margin between 51% and 53%. ASML on Wednesday raised its guidance for the second time this year as its customers continue to ramp up production capacity of AI chips. The Dutch semiconductor-equipment maker said it now expects full-year sales to come in between 43 billion euros ($49 billion) and 45 billion euros, and a gross margin of between 54 and 56%. It previously predicted annual net sales of between 36 billion and 40 billion euros, and a gross margin between 51% and 53%. ASML had already raised its guidance last quarter on continued demand for its highest-end EUV machines -- the only tools in the world capable of the lithography needed to make the most advanced chips used for AI. That demand is expected to remain high as chipmakers expand production capacity to meet the needs of the AI boom. Earlier this week, Taiwan Semiconductor Manufacturing Co (TSMC), one of ASML's largest customers, reported a 68% jump in June sales on the back of strong demand for its chips. TSMC is planning to add two advanced chip packaging plants in the Chiayi Science Park in southern Taiwan, Reuters reported, citing remarks made by Taiwan's National Science and Technology Council Minister Wu Cheng-wen on Sunday. UBS analysts said in a July 10 note that the buildout in semiconductor fabrication facilities, as well as AI-driven demand for leading-edge chip production, is expected to help ASML see a stronger second half of the year. Despite robust demand, semiconductor stocks have come under pressure as investors question whether the huge AI-driven capital spending can be sustained. ASML also faces tightening restrictions on export controls of its advanced chip equipment.

Dutch company ASML is $300bn from a trillion. AI could close the gap

The Dutch lithography monopoly is worth about $700bn after a bumper year. A growing number of the people who own it think $1tn is a question of when, not if. ASML has spent 2026 getting steadily, expensively larger. The Dutch company whose machines print the world's most advanced chips is now Europe's most valuable listed business, worth around $700bn (€600bn), and enough of the investors who own it now say the next round number out loud that the question has stopped sounding fanciful: could ASML be Europe's first trillion-dollar company? The case rests on the order book more than the share price. AI has pushed demand for lithography systems past what ASML can build, and the company is shaving weeks off the time it takes to assemble each machine, from about 22 weeks toward 15 or 16. While planning to lift annual output of its extreme ultraviolet systems by around 30% next year and to raise production of its cheaper deep-ultraviolet machines by a similar margin. It has raised its 2026 sales forecast twice and is close to fully booked for 2027. The maths is not exotic. Reaching a trillion means adding roughly $300bn, a gain of a little over 40% on a stock that has already climbed about 60% this year and, in June, became the most valuable European company on record. ASML has added well over $250bn in market value this year alone, and Barclays, Susquehanna and Bernstein have all nudged price targets toward $2,600 a share since the results, even with the stock trading near 38 times next year's expected earnings. "I think it has a really good chance of being the first company in Europe to hit the trillion mark," Carolyn Bell of Stonehage Fleming said. "I just don't know when." The second-quarter figures gave the argument its legs. ASML reported net sales of €9.3bn and net income of €2.9bn at a 54% gross margin, shipped 86 lithography systems against 67 in the first quarter, and lifted full-year guidance to €43-45bn from a previous €36-40bn. It guided to €11-12bn of net sales in the third quarter and returned €1.1bn to shareholders through buybacks in the period, and chief executive Christophe Fouquet put the momentum down to customers accelerating capacity for AI. Underneath the numbers is a monopoly. ASML is the only firm that makes EUV lithography machines, and this year Intel became the first to ship high-volume commercial chips, its Panther Lake laptop processors, made on the newest High-NA version, a $400m tool roughly twice the price of a standard EUV system. High-NA machines resolve finer features in a single exposure, which is what lets chipmakers keep shrinking the transistors that AI accelerators are hungry for. TSMC and Samsung are following at their own pace, which means every leading-edge chipmaker eventually pays ASML. The caveats are the familiar ones. Roughly a fifth of this year's sales are expected to come from China, down sharply from around half two years ago as export controls bite, and a proposed US law could narrow that channel further. The broader worry is cyclicality, since lithography orders track the capital spending of a handful of chipmakers and the hyperscalers funding them, and that spending has turned down before. Shares actually fell on the day of the guidance upgrade, a reminder that a stock priced for perfection can disappoint by merely doing well. What steadies the story is visibility: ASML books its machines years before it ships them, so the near-term revenue is easier to see than for most hardware companies. The strategic picture is steadier than the share price, which is why the Dutch government has gone to some lengths to keep the company at home. The title of Europe's most valuable company has changed hands more than once in recent years, passing between software, luxury and pharma, and never settling for long. This time a chipmaker may be the one to push the continent past a marker only a handful of American technology giants have ever reached.

Chip toolmaker ASML expected to shine light on capacity and China challenges

AMSTERDAM, July 14 (Reuters) - ASML (ASML.AS), opens new tab, the biggest supplier of equipment used to manufacture AI chips, reports quarterly earnings on Wednesday looking to justify its chunky valuation and demonstrate how it will contend with U.S. moves to block exports to China. The Netherlands-based business is Europe's most valuable listed company with a market capitalisation of €610 billion ($696 billion) after the AI boom helped to lift its share price by nearly 70% this year as memory chip makers such as SK Hynix (000660.KS), opens new tab, Samsung (005930.KS), opens new tab and Micron (MU.O), opens new tab rush to add capacity. Biggest customer TSMC (2330.TW), opens new tab, which makes Nvidia's (NVDA.O), opens new tab chips, is also expanding while Intel's (INTC.O), opens new tab recovery and Elon Musk's TeraFab plans could add further demand. EXPORT CONTROLS CLOUDING OUTLOOK Clouding the outlook, however, is a proposed U.S. law requiring U.S. allies to align with export controls to curb China's ability to make advanced chips, with ASML named in the legislation. The company has denied selling ⁠its most advanced EUV tools to China, which is forecast to account for up to 20% of ASML's sales this year through legal purchases of less-advanced DUV tools to make chips for automotive, industrial and electronic products. ASML is forecast to report an 8.8% rise in second-quarter net profit to €2.61 billion on revenue up 14% at €8.8 billion, according to LSEG estimates, with analysts looking for an increase to the company's full-year revenue forecast of between €36 billion and €40 billion. "We expect ASML to have a beat-and-raise earnings report," said Mehdi Hosseini, analyst at broker Susquehanna, adding that all of ASML's capacity to the end of 2027 may already be booked. Morningstar's Javier Correonero said that ASML's 2030 sales target of at least €44 billion now looks overly conservative. "It's very reasonable to assume this guidance is outdated," he said. "I forecast €60 billion in 2030 sales." 'CREATIVE WAYS' TO MEET CUSTOMER DEMAND ASML is the only maker of EUV lithography systems, the huge $300 million machines needed to produce the tiny circuitry on ⁠cutting-edge chips. Each takes about a year to build, one of the factors that limit how quickly AI infrastructure can expand. Chief Executive Christophe Fouquet said in April that ASML was doing everything possible to avoid becoming an industry bottleneck, as happened during the COVID-19 pandemic. ASML, which aims to ship 60 EUV tools this year and 80 next year, has said it could theoretically ship up to 90 without adding physical capacity, though JPMorgan analysts have said they believe it could make as many as 110. "Beyond the 90 we ⁠are looking at creative ways to help customers," ASML said in a statement to Reuters. Options include upgrades to older tools, faster machine assembly and quicker installation. ASML says it has also secured extra supplies of parts that take a long time to produce, including lenses and mirrors from German supplier Zeiss and high-power lasers from Germany's Trumpf. "We are fully prepared ⁠to meet ASML's EUV demand over the next three years," said Trumpf spokesperson Manuel Thoma. Zeiss declined to comment on capacity, though the company has been expanding DUV and EUV optics operations. MORE VALUATION UPSIDE OR HITTING A CEILING? Some analysts cautioned that ASML's valuation looks stretched, with the stock trading at 49 times estimated ⁠2027 earnings. "We believe much of the upside is reflected in the current price and therefore maintain our 'hold' recommendation," said KBC analyst Thomas Couvreur. Others said there is still room for a positive surprise because ASML has underperformed the benchmark Philadelphia Semiconductor Index so far this year. "Strong results combined with further capacity expansion could support a catch-up," said ING analyst Marc Hesselink. ($1 = 0.8769 euros) Reporting by Toby Sterling and Nathan Vifflin Editing by Adam Jourdan and David Goodman Our Standards: The Thomson Reuters Trust Principles., opens new tab

ASML plans to build EUV machines 30% faster as AI demand outstrips its production capacity

ASML is working to cut the time it takes to build and test its extreme ultraviolet lithography machines by roughly a third, CFO Roger Dassen told reporters on Wednesday. The cycle time, the period between starting production in ASML's clean rooms and shipping, was about 22 weeks a few quarters ago. "We're now looking at bringing that down to 15 to 16 weeks," Dassen said. The Dutch company is "close to being fully booked" for EUV machines in 2027, with a "substantial number" of orders for 2028. Dassen called it "rare" to have orders that far in advance, a signal of how aggressively chipmakers are building capacity for AI. ASML raised its full-year sales guidance to between €43 billion and €45 billion ($49.2 billion) and plans to increase capacity by 30% for 2027, while "investigating" a further 30% boost for 2028. The company outlined plans to produce about 65 units of its low-NA EUV machines this year. To hit higher numbers, ASML is reducing testing protocols while maintaining quality, reorganising clean room cabins to dedicate all space to output rather than R&D, and working with its supply chain to remove bottlenecks. "We see opportunities to reduce the testing protocol and still maintain quality," Dassen said. "We can crank out more tools, and customers are open to that." AI infrastructure demand is driving long-term supply commitments across every layer of the semiconductor stack, from memory to the machines that make the chips. EUV machines take more than a year to deliver after an order is placed, and ASML is the only company in the world that makes them. Every advanced chip from TSMC, Samsung, and Intel requires ASML's tools. The capacity constraints mean that the pace at which AI data centres can be built is ultimately gated by how fast ASML can ship lithography equipment. The AI memory shortage is already driving up consumer electronics prices, and ASML's production bottleneck sits one step further upstream, at the machines that make the chips that go into everything.

ASML raises 2026 guidance second time, beats Q2 earnings

ASML $ASML reported second-quarter net sales of €9.3 billion on Wednesday, beating expectations, as the company raised its full-year revenue forecast for the second time this year on sustained demand for advanced AI chips. ASML's updated outlook calls for 2026 net sales of €43 billion to €45 billion alongside a gross margin of 54% to 56%, a significant step up from the previous guidance of €36 billion to €40 billion in net sales and a gross margin of 51% to 53%, the company said. Second-quarter net profit came in at €2.9 billion, up from €2.3 billion a year earlier. Analysts had expected net sales of €8.8 billion and net profit of €2.6 billion for the quarter, according to CNBC. "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," ASML President and Chief Executive Officer Christophe Fouquet said in a statement. "Our customers, in turn, continue to accelerate their capacity expansion plans." ASML said order intake was strong enough in the first half of the year that the company plans to increase its 2026 low NA EUV capacity of around 65 units by 30% for 2027, and is evaluating a further 30% increase for 2028. The company also plans to add 30% to its 2026 deep ultraviolet immersion capacity of around 130 units for 2027, with another potential 30% increase for 2028 under consideration, the company said. Fouquet said the company was close to receiving all orders for its extreme ultraviolet lithography systems needed for next year, according to The Wall Street Journal. He also said memory revenue should grow 75% this year. ASML shares surged more than 7% when markets opened but gave back much of that advance, finishing the session up around 3%. ASML holds a unique position in the global chip supply chain as the sole maker of extreme ultraviolet lithography machines, which chipmakers depend on to manufacture their most cutting-edge semiconductors. Lithography systems represent one of the largest single costs inside any advanced semiconductor facility, with ASML holding a near-monopoly on the equipment that chipmakers cannot build without. China is still projected to represent about 20% of ASML's total net sales this year, the company said, while South Korea emerged as the top revenue-generating market in the second quarter at 43% of sales. Investors will get a fuller picture of where the company is headed when ASML holds a Capital Markets Day on June 10, 2027.

AI demand powers forecast hike, profit gains at tech giant ASML

The Hague (AFP) - Strong demand for AI systems pushed up sales forecasts and drove a gain in second-quarter profits Wednesday at Dutch tech giant ASML, which manufactures chip-making machines to power the tech industry. ASML is a critical cog in the global economy and a key bellwether for the tech sector, as everything from smartphones to missiles rely on the semiconductors crafted with its tools. Investors were watching the results especially closely after several sharp sell-offs in the tech sector over fears the AI bubble might be approaching its bursting point. But the firm's Chief Executive Officer Christophe Fouquet said AI was still pushing his business forward. "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," said Fouquet in a statement. "Our order intake remained extremely strong in the first half of the year," added the CEO. The firm, Europe's biggest by market capitalisation, said it now expected to make between 43 and 45 billion euros ($49-51 billion) in total net sales this year. This was an increase from the range of 36-40 billion that ASML had previously forecast and was due to "a continuous, very strong demand from our customers," said Fouquet. Net profits were also better than expected for the second quarter, coming in at 2.9 billion euros compared to the 2.3 billion euros the firm made in the same period last year. "All in all, I would say a very strong quarter. Both from a market dynamic perspective and from an execution perspective," said Chief Financial Officer Roger Dassen. 'Technological terrorism' ASML said it expects net sales of between 11 and 12 billion euros for the third quarter of the year. Its second-quarter net sales came in at a better-than-forecast 9.3 billion euros, compared with 7.7 billion euros in the same three months of last year. Based on the strong momentum, Fouquet said the firm planned to increase capacity by 30 percent for two of its key chipmaking machines, with another 30-percent boost possible in 2028. The company has been caught in the crossfire of a tech spat between the United States and China and has previously warned its Chinese sales would "decline significantly" this year. Dassen said ASML expected China to represent around 20 percent of its sales for 2026. "You could say that the Chinese market is moving in sync with the overall behaviour that we see globally," said Dassen. Washington is leading efforts to curb high-tech exports to China over fears they could be used to bolster the country's military. Beijing has reacted furiously to the measures, describing them as "technological terrorism". Last month, ASML denied reports of US concerns that one of its advanced chipmaking machines was in China, potentially violating the restrictions. In January, ASML announced a shake-up in its organisation that was expected to result in the loss of around 1,700 jobs in the Netherlands and United States, mainly from leadership roles. The firm employs roughly 44,000 staff worldwide.

AI demand lifts Europe's biggest company ASML's sales forecast

Europe's biggest company by market capitalisation, ASML, continues to benefit from the AI boom after raising its full-year net sales forecast to between €43bn and €45bn. Investors welcomed the upgrade, sending the shares up more than 5%. Strong demand for AI systems boosted the performance of Dutch semiconductor equipment maker ASML, prompting the company to raise its full-year outlook after reporting better-than-expected quarterly results on Wednesday. ASML is a critical cog in the global economy and a key bellwether for the tech sector, as everything from smartphones to missiles relies on the semiconductors crafted with its tools. The Veldhoven, Netherlands-based company said it expects 2026 total net sales to be between €43 billion and €45 billion, with a gross margin between 54% and 56%. It previously predicted annual net sales of between €36bn and €40bn, and a gross margin between 51% and 53%. "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," said ASML President and Chief Executive Officer Christophe Fouquet in a statement. For the three months between April and June, ASML had total net sales of €9.3bn, better than expected. This compares with €7.7bn in the same three months of last year. The gross margin was 54%. Net profits were also better than expected for the second quarter, coming in at €2.9bn, compared with €2.3bn in the same period last year. Investors were watching the results especially closely after several sharp sell-offs in the tech sector over fears the AI bubble might be approaching a bursting point. Ben Barringer, head of technology research at Quilter Cheviot, said, "ASML's results reinforce just how strong demand remains across the semiconductor sector. The company delivered a solid beat and raise, with particularly strong demand coming from both memory and logic chips, although memory is currently growing faster". According to ASML, sustained AI investment is driving demand for advanced chips. "Our order intake remained extremely strong in the first half of the year," said Fouquet, adding that customers of the company "continue to accelerate their capacity expansion plans", providing ASML with "increased visibility into longer-term demand." ASML is the only company in the world that makes extreme ultraviolet (EUV) lithography machines used to produce the most advanced semiconductors. Strong demand has prompted ASML to plan a roughly 30% increase in production capacity next year for both its most advanced extreme ultraviolet (EUV) chipmaking machines and its older deep ultraviolet (DUV) systems. The company is also considering a further 30% expansion in 2028 while continuing to broaden its machine upgrade business. ASML said it expects net sales of between €11bn and €12bn for the third quarter of 2026. 'Technological terrorism' The company has been caught in the crossfire of a tech spat between the United States and China and has previously warned that its Chinese sales would "decline significantly" this year. Chief financial officer Roger Dassen said ASML expected China to represent around 20% of its sales in 2026. "You could say that the Chinese market is moving in sync with the overall behaviour that we see globally," said Dassen. Washington is leading efforts to curb high-tech exports to China over fears they could be used to bolster the country's military. Beijing has reacted furiously to the measures, describing them as "technological terrorism". Last month, ASML denied reports of US concerns that one of its advanced chipmaking machines was in China, potentially violating the restrictions. In January, ASML announced a shake-up of its organisation that was 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.

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

ASML raised its 2026 revenue guidance to €43-45 billion, up from €36-40 billion, after beating Q2 estimates on surging AI chipmaking demand, sending shares up 5.7% as the company plans a 30% capacity boost for its EUV systems over the next two years. 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. US MarketsPowered By As on 15 Jul 2026, 01:30 AM IST S&P 500 Top Gainers CrowdStrike Holdings210.73(12.14%) Goldman Sachs Group1,140(9.00%) Dell Technologies457.54(7.12%) Palo Alto Networks352.89(6.84%) Gainers" S&P 500 Top Losers IBM217.07(-25.21%) Coterra Energy32.56(-8.62%) Biogen191.95(-8.17%) HCA Healthcare363.60(-6.95%) Losers" 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.

Chip toolmaker ASML expected to shine light on capacity and China challenges

The Netherlands-based business is Europe's most valuable listed company with a market capitalisation of €610 billion ($696 billion) after the AI boom helped to lift its share price by nearly 70% this year as memory chip makers such as SK Hynix, Samsung and Micron rush to add capacity. ASML, the biggest supplier of equipment used to manufacture AI chips, reports quarterly earnings on Wednesday looking to justify its chunky valuation and demonstrate how it will contend with U.S. moves to block exports to China. The Netherlands-based business is Europe's most valuable listed company with a market capitalisation of €610 billion ($696 billion) after the AI boom helped to lift its share price by nearly 70% this year as memory chip makers such as SK Hynix, Samsung and Micron rush to add capacity. Biggest customer TSMC, which makes Nvidia's chips, is also expanding while Intel's recovery and Elon Musk's TeraFab plans ⁠could add ⁠further demand. Export controls clouding outlook Clouding the outlook, however, is a proposed U.S. law requiring U.S. allies to align with export controls to curb China's ability to make advanced chips, with ASML named in the legislation. The company has denied selling its most advanced EUV tools to China, which is forecast to account for up to 20% of ASML's sales this year through legal purchases of less-advanced DUV tools to make chips for automotive, industrial and electronic products. ASML is forecast to report an 8.8% rise in second-quarter net profit to €2.61 billion on revenue up 14% at €8.8 billion, according to LSEG estimates, with analysts looking for an increase to the company's full-year revenue forecast of between €36 billion ⁠and €40 billion. "We expect ASML to have a beat-and-raise earnings report," said Mehdi Hosseini, analyst at broker Susquehanna, adding that all of ASML's capacity to the end of 2027 may already be booked. Morningstar's Javier Correonero said that ASML's 2030 sales target of ⁠at least €44 billion now looks overly conservative. "It's very reasonable to assume this guidance is outdated," he said. "I forecast €60 billion in 2030 sales." 'Creative ways' to meet customer demand ASML is the only maker of EUV lithography systems, the huge $300 million machines needed to produce the tiny circuitry on cutting-edge chips. Each takes about a year to build, one of the factors that limit how quickly AI infrastructure can expand. Chief Executive Christophe Fouquet said in April that ASML was doing everything possible to avoid becoming an industry bottleneck, as happened during the COVID-19 pandemic. ASML, which aims to ship 60 EUV tools this year and 80 next year, has said it could theoretically ship up to 90 without adding physical capacity, though JPMorgan analysts have said they believe it could make as many as 110. "Beyond the 90 we are looking at creative ways to help customers," ASML said in a statement to Reuters. Options include upgrades to older tools, faster machine assembly and quicker installation. ASML says it has also secured extra supplies ⁠of parts that take a long time to produce, including lenses and mirrors from German supplier Zeiss and high-power lasers from Germany's Trumpf. "We are fully prepared to meet ASML's EUV demand over the next three years," said Trumpf spokesperson Manuel Thoma. Zeiss declined to comment on capacity, though the company has been expanding DUV and EUV optics operations. More valuation upside or hitting a ceiling? Some analysts cautioned that ASML's valuation looks stretched, with the stock trading at 49 times estimated 2027 earnings. "We believe much of the upside is reflected in the current price and therefore maintain our 'hold' recommendation," said KBC analyst Thomas Couvreur. Others said there is still room for a positive surprise because ASML has underperformed the benchmark Philadelphia Semiconductor Index so far this year. "Strong results combined with further capacity expansion could support a catch-up," said ING analyst Marc Hesselink.

AI demand powers forecast hike, profit gains at tech giant ASML - The Korea Times

A flag and a logo at ASML offices on the day workers participate in a walk-out over the company's plans to cut its workforce, in Veldhoven, Netherlands, March 24. Reuters-Yonhap THE HAGUE -- Strong demand for AI systems pushed up sales forecasts and drove a gain in second-quarter profits Wednesday at Dutch tech giant ASML, which manufactures chip-making machines to power the tech industry. ASML is a critical cog in the global economy and a key bellwether for the tech sector, as everything from smartphones to missiles rely on the semiconductors crafted with its tools. Investors were watching the results especially closely after several sharp sell-offs in the tech sector over fears the AI bubble might be approaching its bursting point. But the firm's chief executive officer Christophe Fouquet said AI was still pushing his business forward. "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," said Fouquet in a statement. "Our order intake remained extremely strong in the first half of the year," added the CEO. The firm, Europe's biggest by market capitalisation, said it now expected to make between 43 and 45 billion euros ($49-51 billion) in total net sales this year. This was an increase from the range of 36-40 billion that ASML had previously forecast and was due to "a continuous, very strong demand from our customers," said Fouquet. Net profits were also better than expected for the second quarter, coming in at 2.9 billion euros compared to the 2.3 billion euros the firm made in the same period last year. "All in all, I would say a very strong quarter. Both from a market dynamic perspective and from an execution perspective," said chief financial officer Roger Dassen. Stock market players agreed, pushing the stock up by nearly eight percent at the opening bell of the Amsterdam trading session. Boosted by ASML, the AEX index soared above 1,100 points for the first time. 'Technological terrorism' ASML said it expects net sales of between 11 and 12 billion euros for the third quarter of the year. Its second-quarter net sales came in at a better-than-forecast 9.3 billion euros, compared with 7.7 billion euros in the same three months of last year. Based on the strong momentum, Fouquet said the firm planned to increase capacity by 30 percent for two of its key chipmaking machines, with another 30-percent boost possible in 2028. The company has been caught in the crossfire of a tech spat between the United States and China and has previously warned its Chinese sales would "decline significantly" this year. Dassen said ASML expected China to represent around 20 percent of its sales for 2026. "You could say that the Chinese market is moving in sync with the overall behaviour that we see globally," said Dassen. Washington is leading efforts to curb high-tech exports to China over fears they could be used to bolster the country's military. Beijing has reacted furiously to the measures, describing them as "technological terrorism". Last month, ASML denied reports of US concerns that one of its advanced chipmaking machines was in China, potentially violating the restrictions. In January, ASML announced a shake-up in its organisation that was expected to result in the loss of around 1,700 jobs in the Netherlands and United States, mainly from leadership roles.

ASML Shares Rise After Second 2026 Forecast Upgrade on AI Chip Demand

ASML shares rose more than 3% on Wednesday after the Dutch chip equipment maker raised its 2026 sales forecast for the second time this year. The company also reported quarterly revenue and profit above market estimates as chipmakers increased spending on advanced production tools. The update points to demand for equipment used in AI processors, data centers, and high-bandwidth memory. ASML said customer orders stayed strong during the first half of 2026 as foundries and memory producers moved faster on capacity plans.

ASML jumps 5% after Q2 beat, lifts 2026 outlook on AI chip demand By Investing.com

Investing.com -- Shares in ASML Holding NV jumped over 5% on Wednesday, their biggest one-day gain since June 30, after the Dutch chipmaking equipment supplier reported second-quarter profit and revenue that beat analyst estimates and raised its full-year outlook on strong artificial intelligence-related chip demand. The stock remains below its 52-week high of €1,741.00, reached on June 30, and is up roughly 67% year-to-date. ASML reported second-quarter net income of €2.92 billion, above the IBES consensus estimate of €2.62 billion. Total net sales rose to €9.33 billion from €8.77 billion in the first quarter, up 21% year-on-year, while gross margin came in at 54.0%, above consensus of 51.9%. Chief executive Christophe Fouquet said the results, which beat company guidance, were "driven primarily by higher than expected Installed Base Management sales." For the third quarter, ASML guided revenue of €11 billion to €12 billion, above the IBES estimate of €10.10 billion, with gross margin expected between 55% and 57%. The company raised its full-year 2026 revenue forecast to a range of €43 billion to €45 billion, above the IBES estimate of €39.40 billion, with full-year gross margin now seen between 54% and 56%, up from a previous guidance range of 51% to 53%. Fouquet said ongoing AI-related infrastructure investment and progress in AI technologies were driving demand for advanced logic and memory chips, adding that customers were accelerating capacity expansion plans and providing the company with "increased visibility into longer-term demand." Order intake remained "extremely strong" in the first half of the year, he said. In response to that demand, ASML said it plans to add 30% to its 2026 low-NA EUV lithography system capacity of around 65 units for 2027, and is investigating a further 30% increase for 2028. The company also plans a 30% increase to its 2026 DUV immersion capacity of around 130 units for 2027, with a further 30% expansion under review for 2028. The company sold 86 new lithography systems in the quarter, up from 67 in the first quarter, alongside 5 used systems, down from 12. ASML declared an interim dividend of €1.88 per ordinary share, payable August 5, and said it repurchased around €1.1 billion of shares during the quarter under its 2026-2028 buyback program. The company confirmed its next Capital Markets Day will be held on June 10, 2027. European chip stocks gained on Wednesday as ASML's outlook lift rippled across the sector. Shares in Soitec rose 2.3%, Jenoptik jumped 3.6%, and BE Semiconductor Industries added 0.3%, tracking ASML's advance as of 03:37 ET (07:37 GMT). It marked the second time this year ASML has raised its annual guidance, having previously lifted its 2026 sales forecast to a range of €36 billion to €40 billion from the company's original outlook. BofA Securities, which maintained a "buy" rating and a price objective of €2,022, said the results were driven by stronger-than-expected Installed Base Management sales and margins, with second-quarter EBIT of €3.46 billion coming in 13% above consensus and earnings per share of €7.6 beating estimates by 11%. The brokerage said ASML's guidance implies fourth-quarter revenue of about €14.4 billion versus a consensus of €11.6 billion, and forecast the company would ship 88 EUV systems in 2027 and 105 in 2028. The company said High-NA EUV had entered volume production at Intel Foundry for Intel's Core Ultra Series 3 processors, and forecast 25% growth in logic demand and 75% growth in memory sales for 2026, with China now expected to represent about 20% of group sales, according to BofA. Morgan Stanley, which holds an "overweight" rating and "Top Pick" designation, raised its price target to €1,830 from €1,660, calling the results a "notable beat and raise." The brokerage said ASML's full-year 2026 guidance, up about 34% year-on-year at the midpoint, came in well above its own €39.4 billion estimate, while the company's Q3 guidance of €11.5 billion at the midpoint was 12% ahead of the roughly €10.3 billion analysts had expected. Morgan Stanley said the third-quarter margin guidance of 55-57% implied an operating margin of about 42%, versus consensus of around 37%, and pointed to ASML's plans to expand low-NA EUV capacity to around 110 systems by 2028 as a signal of sustained order momentum into 2027.

Could AI chip boom make ASML Europe's first trillion-dollar firm?

AMSTERDAM, July 20 (Reuters) - The global artificial intelligence boom has propelled ASML to the top of Europe's stock market, as soaring demand for AI computer chips flows to the Dutch company that dominates the market for the equipment needed to make them. After blowout second quarter earnings, investors and analysts are asking a once far-fetched question: could ASML become Europe's first ever trillion-dollar firm? Key obstacles include doubts over how long Google, Amazon, and other hyperscalers will keep spending heavily on data centres, and whether ASML, its suppliers and customers such as TSMC and Samsung can execute expansion plans. But after ASML shares spiked 60% this year to push the firm close to a $700 billion valuation, investors and analysts say the trillion-dollar scenario is plausible. "I think it has a really good chance of being the first company in Europe to hit the trillion mark," said Carolyn Bell, lead portfolio manager for Stonehage Fleming's Global Best Ideas, adding ASML accounted for about 8% of the portfolio. "I just don't know when." (Reporting by Toby Sterling and Nathan Vifflin; Editing by Adam Jourdan and Daniel Wallis) By Toby Sterling and Nathan Vifflin

ASML capacity upgrade soothes AI chip bottleneck fears

AMSTERDAM, July 15 (Reuters) - ASML, the world's dominant supplier of equipment needed to make high-tech computer chips, raised its 2026 sales forecasts on Wednesday and pledged a capacity boost that may ease fears a production bottleneck could slow the AI boom. Its second forecast hike of the year came as Europe's most valuable listed company, whose machines help make chips for Nvidia's contract chipmaker TSMC, beat second-quarter earnings forecasts, pushing its shares up nearly 4%. "Blow-out results across the board," said Degroof Petercam analyst Michael Roeg. ASML said it would increase capacity by 30% in each of the coming two years to meet what CEO Christophe Fouquet described as "extremely strong" customer demand for its lithography "chip-printing" tools required to make advanced AI chips. ASML CAPACITY HAD BEEN VIEWED AS A BOTTLENECK The strong earnings and production boost send a positive signal for the wider market as chip demand has rocketed due to a global data centre build-out and increased use of AI tools. "Easing lithography constraints is also positive for the broader equipment ecosystem, where ASML has been viewed as a key bottleneck," said analyst Marc Hesselink in a note. He added the beat, guidance hike and "improved visibility" could further support ASML's shares. ASML said it now expects full-year 2026 net revenue of EUR43 billion to EUR45 billion ($49 billion to $51 billion), an increase of 16% at the midpoint from its earlier forecast range of EUR36 billion to EUR40 billion. The Amsterdam-listed shares, up 75% in the year to date, rose 3.7% to EUR1,613 at 1000 GMT. ASML CUSTOMERS ACCELERATE CAPACITY EXPANSION PLANS The Dutch company is the world's only maker of extreme ultraviolet lithography (EUV) tools, which are needed to create the nanometre-scale circuitry of advanced logic and memory chips that go into data centres built by Google and Amazon and run the models built by OpenAI and Anthropic. "Our customers in turn continue to accelerate their capacity expansion plans ... providing ASML with increased visibility into longer-term demand," CEO Fouquet said in a statement. ASML customers include TSMC, as well as memory chip makers Samsung, SK Hynix and Micron, all of whom are expanding capacity. ASML said it intended to expand capacity by nearly a third per year for its flagship EUV tools, though Fouquet said nearly all of its expanded EUV capacity through 2027 is already fully booked. It plans to similarly ramp up capacity for deep ultraviolet (DUV) tools, which are needed for less advanced chips and by customers in China. CFO Roger Dassen told reporters that the capacity expansion takes into account the needs of new customer Terafab, which Elon Musk is building in Texas to supply chips to SpaceX and Tesla. Analysts from JPMorgan said they believed Wednesday's results would help ASML close a valuation gap with U.S. peers. "The message from bears has been that they are capacity-limited or that they don't grow ... (but) the company is virtually guiding 30% growth in the next two years," they said. Separately, Fouquet said Intel will use ASML's new High-NA tool to make some of its most advanced "Panther Lake" chips, marking a first for the technology. ASML's revenue for the three months ended June 30 was EUR9.33 billion, topping analysts' estimates of EUR8.80 billion, while net income was EUR2.92 billion, above expectations of EUR2.62 billion, according to LSEG data. CHINESE DEMAND STRONG DESPITE U.S.-LED EXPORT RESTRICTIONS Dassen reiterated ASML's estimate that Chinese customers will account for about 20% of sales this year -- less in percentage terms than in the past several years, but increasing in absolute terms as ASML's sales rise. "The Chinese market is moving in sync with the overall behaviour that we see globally," he said in a video statement. ASML is barred from selling EUV tools and its best DUV tools in China due to U.S.-led export restrictions, but it does sell less-capable DUV machines to customers there that are capable of making relatively advanced chips. Dassen said demand is strong from Chinese makers of logic chips, which are used in electrical grids, AI, computers and smartphones for the Chinese domestic market. U.S. lawmakers have proposed a law that could further restrict the company's China sales, a continuing business risk for ASML. ($1 = 0.8742 euros) (Reporting by Toby Sterling in Amsterdam, Nathan Vifflin in Gdansk; Editing by Matt Scuffham and Joe Bavier) By Toby Sterling and Nathan Vifflin

ASML cheered for its solid quarter and upbeat targets

For the past quarter, ASML posted EPS up a little more than 6% sequentially, to €7.59, beating the consensus by more than 11%, with gross margin up one point, to 54%, on revenue growth of 6.4%, to nearly €9.33bn (versus 51.9% and €8.83bn expected by the consensus). The Dutch semiconductor equipment maker noted that its gross margin and revenue thus exceeded its own targets (51% to 52% and €8.4bn to €9bn), driven mainly by higher sales in installed base management, according to CEO Christophe Fouquet. Demand still propelled by the rise of AI "Ongoing investments tied to artificial intelligence (AI) and steady advances in AI technologies are boosting demand for leading-edge logic and memory chips, reinforcing the semiconductor industry's growth outlook," the CEO said. "Meanwhile, our customers continue to accelerate their capacity expansion plans. This translates into customer commitments across our entire product portfolio, giving ASML better visibility into long-term demand," he added. Saying order intake "remained extremely strong in the first half," ASML plans in particular to increase production capacity for low numerical aperture (low-NA) EUV systems and immersion DUV systems by 30% for 2027, and is considering further 30% increases for 2028. Upbeat targets for the current quarter and for 2026 This confidence in its outlook is reflected in ambitious financial targets: for Q3 2026, the Veldhoven-based group expects gross margin of between 55% and 57% and revenue of €11bn to €12bn, while analysts on average were expecting only 52.1% and €10.4bn respectively, according to Oddo BHF. For the full current fiscal year, ASML now expects gross margin of 54% to 56% on revenue of €43bn to €45bn in 2026, versus target ranges of 51% to 53% and €36bn to €40bn presented three months ago, and while the consensus was aiming for 52.4% and €39.6bn respectively. A release welcomed by Oddo BHF "A very positive reaction is expected following this release, thanks to the upgrade to forecasts for fiscal 2026 as well as comments on the ramp-up in capacity and order intake activity through 2028," Oddo BHF said this morning ahead of the market open. "ASML continues to embody unrivaled technological dominance and now benefits from a fundamentally different cycle, driven by the rise of AI, while also having a clear roadmap to improve the performance of its production systems," the research firm added. Noting that the stock trades at 32 times 12-month forward EBITDA, above its average of 26 times, but still below its recent peak of 37 times, Oddo BHF at this stage reaffirmed its "outperform" rating on ASML, with a price target of €2,000.

ASML Shares Jump After Chip-Machine Supplier Raises Guidance Again on AI Demand

ASML Holding shares climbed after the company lifted its annual sales guidance for the second time and said it would boost output of its semiconductor-making machines in the coming years as the race to build artificial-intelligence infrastructure turns chips into a hot commodity. Shares in Amsterdam gained more than 6% on Wednesday, solidifying ASML's lead as Europe's most valuable listed company, above names such as Wegovy maker Novo Nordisk, luxury giant LVMH Moet Hennessy Louis Vuitton and Germany's Volkswagen. ASML stock is up nearly 80% since the year began and shares have more than doubled over the past 12 months. Fervor around AI and expectations that chips will remain in high demand have propelled global semiconductor stocks to new highs in recent months despite bouts of volatility as some investors worry that valuations and spending on a technology that hasn't yet yielded the expected benefits might be too high. The Dutch group supplies machines that use light to print tiny patterns that form circuits inside modern semiconductors, making it a go-to for big chip makers like Taiwan Semiconductor Manufacturing Co., Samsung Electronics and Intel as they face growing demand from their own customers. The race to build out AI infrastructure--backed by hundreds of billions of dollars in investments from some of the world's largest tech groups--has ushered in a scramble for the sophisticated chips needed to power data centers, with ASML reaping the benefits as chip makers need more of its machines to satisfy demand. ASML said Wednesday that it was projecting annual sales between 43 billion and 45 billion euros, equivalent to a range of $49.11 billion to $51.39 billion, compared with prior guidance of 36 billion to 40 billion euros. Meanwhile, its gross margin--a closely watched metric of pricing power and profitability--is expected between 54% and 56% compared with 51% to 53% previously. "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," ASML Chief Executive Christophe Fouquet said. Companies can't get enough memory and storage chips as AI demand has pushed up their cost so much that Apple had to raise prices for some of its products. Executives at Micron Technology said last month that tight conditions would persist beyond 2027. Fouquet said ASML's memory revenue should increase by 75% this year, underscoring appetite for equipment to make those chips. He said the company was close to receiving all the orders of extreme ultraviolet lithography systems it needs for next year and that it was looking to increase capacity so it could ship more machines to meet demand. Extreme ultraviolet systems, or EUVs, are ASML's most advanced machines that are used to print the most intricate layers on chips. Intel uses the company's high-end systems to make some of its most advanced products. ASML executives are considering a roughly 30% boost to EUV output for 2027 and another 30% increase for 2028 as customers have already placed a large number of orders for that year. "Our customers, in turn, continue to accelerate their capacity expansion plans. This is translating into customer commitments across our product portfolio, providing ASML with increased visibility into longer-term demand. Our order intake remained extremely strong in the first half of the year," Fouquet said. ASML posted sales of 9.33 billion euros for the second quarter, up from 7.69 billion euros a year earlier. The figure is above analysts' forecast of 8.83 billion euros, according to Visible Alpha. Net profit grew to 2.92 billion euros from 2.29 billion euros, beating market expectations. Gross profit increased to nearly 5.04 billion euros from 4.13 billion euros, generating a 54% margin that beat consensus and company guidance.

Chip-Machine Supplier ASML Raises Guidance Again on Unrelenting AI Demand -- 2nd Update

ASML Holding lifted its annual guidance for the second time, a sign that companies are scrambling for its semiconductor-making tools as the race to build artificial-intelligence infrastructure turns chips into a hot commodity. The Dutch group supplies machines that use light to print tiny patterns that form circuits inside modern semiconductors, making it a go-to for big chip makers like Taiwan Semiconductor Manufacturing Co., Samsung Electronics and Intel as they face growing demand from their own customers. The race to build out AI infrastructure--backed by hundreds of billions of dollars in investments from some of the world's largest tech groups--has ushered in a scramble for the sophisticated chips needed to power data centers, with ASML reaping the benefits as chip makers need more of its machines to satisfy demand. ASML said Wednesday that it was projecting annual sales between 43 billion and 45 billion euros, equivalent to a range of $49.11 billion to $51.39 billion, compared with prior guidance of 36 billion to 40 billion euros. Meanwhile, its gross margin--a closely watched metric of pricing power and profitability--is expected between 54% and 56% compared with 51% to 53% previously. "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," Chief Executive Christophe Fouquet said. Companies can't get enough memory and storage chips as AI demand pushed up their cost so much that Apple had to raise prices for some of its products. Executives at Micron Technology said last month that tight conditions would persist beyond 2027. Fervor around AI and expectations that chips will remain in high demand have propelled global semiconductor stocks to new highs in recent months despite bouts of volatility as some investors worry that valuations and spending on a technology that hasn't yet yielded the expected benefits might be too high. ASML solidified its lead as Europe's most valuable listed company, blowing past Wegovy maker Novo Nordisk, luxury giant LVMH Moet Hennessy Louis Vuitton and Germany's Volkswagen. ASML stock gained more than 68% since the year began and shares have more than doubled over the past 12 months. ASML posted sales of 9.33 billion euros for the second quarter, up from 7.69 billion euros a year earlier. The figure is above analysts' forecast of 8.83 billion euros, according to Visible Alpha. Net profit grew to 2.92 billion euros from 2.29 billion euros, beating market expectations. Gross profit increased to nearly 5.04 billion euros from 4.13 billion euros, generating a 54% margin that beat consensus and company guidance. For the current quarter, the company expects sales between 11 billion and 12 billion euros, with a gross margin between 55% and 57%.

Chip toolmaker ASML expected to shine light on capacity and China challenges

AMSTERDAM, July 14 (Reuters) - ASML, the biggest supplier of equipment used to manufacture AI chips, reports quarterly earnings on Wednesday looking to justify its chunky valuation and demonstrate how it will contend with U.S. moves to block exports to China. The Netherlands-based business is Europe's most valuable listed company with a market capitalisation of EUR610 billion ($696 billion) after the AI boom helped to lift its share price by nearly 70% this year as memory chip makers such as SK Hynix, Samsung and Micron rush to add capacity. Biggest customer TSMC, which makes Nvidia's chips, is also expanding while Intel's recovery and Elon Musk's TeraFab plans could add further demand. EXPORT CONTROLS CLOUDING OUTLOOK Clouding the outlook, however, is a proposed U.S. law requiring U.S. allies to align with export controls to curb China's ability to make advanced chips, with ASML named in the legislation. The company has denied selling its most advanced EUV tools to China, which is forecast to account for up to 20% of ASML's sales this year through legal purchases of less-advanced DUV tools to make chips for automotive, industrial and electronic products. ASML is forecast to report an 8.8% rise in second-quarter net profit to EUR2.61 billion on revenue up 14% at EUR8.8 billion, according to LSEG estimates, with analysts looking for an increase to the company's full-year revenue forecast of between EUR36 billion and EUR40 billion. "We expect ASML to have a beat-and-raise earnings report," said Mehdi Hosseini, analyst at broker Susquehanna, adding that all of ASML's capacity to the end of 2027 may already be booked. Morningstar's Javier Correonero said that ASML's 2030 sales target of at least EUR44 billion now looks overly conservative. "It's very reasonable to assume this guidance is outdated," he said. "I forecast EUR60 billion in 2030 sales." 'CREATIVE WAYS' TO MEET CUSTOMER DEMAND ASML is the only maker of EUV lithography systems, the huge $300 million machines needed to produce the tiny circuitry on cutting-edge chips. Each takes about a year to build, one of the factors that limit how quickly AI infrastructure can expand. Chief Executive Christophe Fouquet said in April that ASML was doing everything possible to avoid becoming an industry bottleneck, as happened during the COVID-19 pandemic. ASML, which aims to ship 60 EUV tools this year and 80 next year, has said it could theoretically ship up to 90 without adding physical capacity, though JPMorgan analysts have said they believe it could make as many as 110. "Beyond the 90 we are looking at creative ways to help customers," ASML said in a statement to Reuters. Options include upgrades to older tools, faster machine assembly and quicker installation. ASML says it has also secured extra supplies of parts that take a long time to produce, including lenses and mirrors from German supplier Zeiss and high-power lasers from Germany's Trumpf. "We are fully prepared to meet ASML's EUV demand over the next three years," said Trumpf spokesperson Manuel Thoma. Zeiss declined to comment on capacity, though the company has been expanding DUV and EUV optics operations. MORE VALUATION UPSIDE OR HITTING A CEILING? Some analysts cautioned that ASML's valuation looks stretched, with the stock trading at 49 times estimated 2027 earnings. "We believe much of the upside is reflected in the current price and therefore maintain our 'hold' recommendation," said KBC analyst Thomas Couvreur. Others said there is still room for a positive surprise because ASML has underperformed the benchmark Philadelphia Semiconductor Index so far this year. "Strong results combined with further capacity expansion could support a catch-up," said ING analyst Marc Hesselink. ($1 = 0.8769 euros) (Reporting by Toby Sterling and Nathan VifflinEditing by Adam Jourdan and David Goodman) By Toby Sterling and Nathan Vifflin