Chip giant ASML raises 2026 guidance as AI semiconductor demand stays strong

ASML, the Dutch semiconductor equipment manufacturer, has raised its sales forecast for 2026 following stronger-than-expected first-quarter revenue and profit results. The company now anticipates net sales between 36 billion euros and 40 billion euros, up from its previous forecast of 34 billion euros to 39 billion euros. This upward revision reflects robust demand for advanced semiconductors driven by artificial intelligence (AI) infrastructure investments, which are accelerating customers’ capacity expansion plans. The surge in demand is particularly evident in the memory chip sector, crucial for AI systems and data centers, where shortages have pushed prices to record highs. ASML reported that 51% of its first-quarter net sales from new tools were for memory chip production, a significant increase from 30% in the prior quarter. South Korean customers, including Samsung and SK Hynix, accounted for 45% of sales, while Taiwanese firms, notably Taiwan Semiconductor Manufacturing Co. (TSMC), represented 23%. TSMC recently posted record first-quarter revenue, underscoring the sustained strength in AI chip demand. Despite these positive trends, ASML faces challenges related to export restrictions in China. The company is barred from shipping its most advanced lithography machines to the Chinese market, and sales to China dropped to 19% of total sales in the first quarter from 36% in the previous quarter. Additionally, U.S. lawmakers have proposed legislation that could extend export bans to ASML’s less advanced equipment, which, if enacted, would further constrain the company’s access to China. These geopolitical tensions highlight the complex environment in which ASML operates, balancing strong global demand with regulatory and trade barriers. ASML’s performance and outlook are closely watched as indicators of the semiconductor industry’s health, given its critical role in supplying the tools needed for cutting-edge chip manufacturing. The company’s raised guidance signals confidence in the sustained growth of semiconductor demand, particularly fueled by AI advancements, even as it navigates significant geopolitical headwinds.