ASML The company raised its sales forecast for 2026 after exceeding first-quarter sales and profit expectations due to continued demand for AI-related chips.
Here’s a comparison of ASML and LSEG consensus forecasts for Q1:
Net sales: €8.8 billion ($10.4 billion) vs. €8.5 billion expected Net income: €2.8 billion vs. €2.5 billion expected
The company previously expected first-quarter sales of between 8.2 billion euros and 8.9 billion euros.
The Dutch company said it now expects net sales to be between 36 billion euros and 40 billion euros in 2026, compared with previous expectations of 34 billion euros to 39 billion euros.
“The growth outlook for the semiconductor industry remains strong, driven by ongoing AI-related infrastructure investments,” ASML CEO Christophe Houck said in a press release.
“Demand for chips is outpacing supply. In response, our customers are accelerating their capacity expansion plans into 2026 and beyond, supported by long-term customer contracts.”
Dutch companies are often seen as leaders in chip demand because they make the tools needed to make cutting-edge semiconductors.
One of its top customers is Taiwan Semiconductor Manufacturing Co., Ltd.. (TSMC) last week reported record first-quarter sales as demand for AI chips remained strong.
Memory chip shortages continue, driving the price of the component to unprecedented highs. Memory is key to AI systems and data centers. As a result, South Korean companies Samsung and SK Hynix are planning to increase their production capacity, which will require ASML machines.
ASML said 51% of its net sales of new tools in the first quarter were for 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 export restrictions prevent it from shipping cutting-edge machinery. Earlier this month, a bipartisan group of U.S. lawmakers introduced legislation that would also ban exports of ASML’s less advanced machinery to China. The law still needs to go through the US legislative process.
System sales to China decreased to 19% of total sales in the first quarter, compared to 36% in the December quarter.
