ASML, the world’s largest supplier of equipment used to make computer chips, on Wednesday raised its 2026 financial forecast and said it would expand production capacity after reporting better-than-expected second-quarter earnings driven by demand for artificial intelligence.
ASML said it expects full-year 2026 net revenue to be between 43 billion and 45 billion euros, an increase of 16% at the interim point from its previous forecast range of 36 billion to 40 billion euros.
Sales for the three months ended June 30 were 9.33 billion euros ($10.9 billion), beating analysts’ expectations of 8.8 billion euros, and net profit was 2.92 billion euros, above expectations of 2.62 billion euros, according to LSEG data.
Chief executive Christophe Fouquet warned that orders were “very strong” due to demand for AI chips.
“Our customers continue to accelerate their capacity expansion plans, giving ASML greater visibility of long-term demand,” Fouquet said in a statement.
The Dutch company is the only manufacturer of extreme ultraviolet lithography (EUV) tools needed to manufacture cutting-edge chips. Customers such as TSMC, Samsung, SK Hynix, and Micron are racing to add capacity to meet AI-related demands.
ASML said it intends to expand its production capacity by 30% each over the next two years for its flagship EUV tools and less advanced chips and deep ultraviolet (DUV) tools needed by customers in China.
Separately, Fouquet said Intel will use ASML’s new high-NA tools to manufacture some of its cutting-edge “Panther Lake” chips, a first for this technology.
(Reporting by Toby Sterling in Amsterdam; Nathan Vifrin in Gdańsk; Editing by Matt Scafham)
