ASML posts record €11.7 billion quarterly sales but cannot meet AI demand
Dutch chip equipment maker ASML reported its highest-ever quarterly sales, €11.7 billion in Q3, and warned that its production plans will fall short of customer demand in 2027 and 2028. The demand is driven by continuing AI investment.
ASML, the Netherlands-based equipment supplier to the semiconductor industry, said on Wednesday that its current production plans will not satisfy customer demand in 2027 and 2028, as investment in artificial intelligence (AI) keeps pushing orders higher. The company also reported its highest quarterly sales to date and raised the lower end of its 2026 sales forecast. The results matter to investors because they show whether AI spending plans are holding up.
Demand outpaces capacity
ASML said customers continue to raise their equipment demand forecasts, largely based on how large and long-lasting they expect AI investment to be. Some want to book machines now for 2029 or 2030. In July, the company said it would expand capacity by 30% in 2027 for both its low-NA extreme ultraviolet (EUV) and deep ultraviolet (DUV) immersion machines. ASML is the only company making EUV systems, which are used for the most advanced chips. A further 30% rise was planned for 2028. CEO Christophe Fouquet said the company is exploring ways to raise 2028 capacity beyond that figure.
A record quarter
Third-quarter sales of €11.66 billion were 55% higher than a year earlier, near the top of ASML's €11–12 billion forecast and in line with the average analyst estimate compiled by Bloomberg. Net income more than doubled to €5 billion, helped by a €510 million gain on stakes in other companies. Gross margin was 57.5%, lifted mainly by €3.3 billion in sales from servicing and upgrading customers' existing machines.
ASML now expects 2026 sales of €44–45 billion, up from €43–45 billion, with a gross margin of about 56%. For the fourth quarter it forecasts sales of €14.2–15.2 billion. The investor call takes place at 15:00 CEST on Wednesday.
A jittery week for AI stocks
The results follow a nervous week for AI-linked shares. Last Thursday, chipmakers fell after a Financial Times report suggested OpenAI's annualised revenue was about $20 billion below figures reported late last month, largely due to how revenue is counted. On Tuesday, Asian chip stocks dropped after Hock Tan, head of US chipmaker Broadcom, said many AI investors did not understand what they were investing in. ASML's Amsterdam-listed shares rose more than 3% on Wednesday morning.
Ben Barringer, head of technology research at UK wealth manager Quilter Cheviot, said ASML delivered strong numbers but has only caught up with market expectations. Taiwan's TSMC, the world's largest contract chipmaker and a major ASML customer, reports on Thursday.
