ASML hikes sales forecast amid strong AI chip demand
Netherlands-based ASML has raised its full-year sales forecast for the second time this year, now expecting between 43 billion euros and 45 billion euros, driven by increased demand for AI chip production equipment.
ASML, the Dutch supplier of crucial equipment for chip manufacturing, has raised its sales forecast for the second time this year. The company now anticipates full-year revenue to be between 43 billion euros ($49 billion) and 45 billion euros, with a gross margin of 54% to 56%.
Previously, ASML had projected sales between 36 billion and 40 billion euros and a gross margin of 51% to 53%. This upward revision reflects a stronger-than-expected demand from chipmakers looking to ramp up production capacity for artificial intelligence chips.
The company's specialized Extreme Ultraviolet (EUV) lithography systems are essential for producing the most advanced chips needed for AI. This demand is fueled by the ongoing boom in AI development and deployment, requiring substantial investments in new chip manufacturing facilities.
ASML's largest customers, such as TSMC, have also reported significant sales increases, partly due to the robust demand for AI-related semiconductors. TSMC is expanding its advanced chip packaging capacity to meet these needs.
While the outlook appears strong, semiconductor companies, including ASML, face potential headwinds from evolving export control regulations and broader market sentiment regarding the sustainability of current capital expenditure levels in the industry.