AI boom drives ASML to lift 2026 sales guidance: Here’s why

In a surprising turnaround, ASML- the world’s largest supplier of chipmaking equipment-released a report on Wednesday showing stronger than expected first-quarter earnings and a lifted 2026 revenue outlook. ASML reported 8.76 billion euros in sales and 2.76 billion euros in net income, marking a significant increase over Q1 2025. Due to surging demand, ASML raised its 2026 revenue guidance to a range of 36 billion to 40 billion euros.

As Europe’s most valuable company by market cap, ASML is exceeding analyst expectations of 37.7 billion euros. Investors view ASML as a foundational AI play, as it is the sole provider of the EUV lithography tools required by manufacturers like TSMC to produce chips for industry giants like Nvidia, Apple, and Microsoft. 

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In this regard, CEO Christophe Fouquet noted that chip demand is currently outpacing supply, leading customers to accelerate capacity expansion plans for 2026 and beyond. Notably, shares have climbed 40% this year, fueled by a global rush to build data centers and a persistent shortage of memory chips.

In order to meet rising demand, the CEO announced plans to ship 60 flagship low-NA EUV tools in 2026 and expand capacity to 80 units by 2027.These EUV machines are among the most complex tools on Earth, costing approximately $300 million each. While headquartered in the Netherlands, ASML’s growth is tied directly to the expansion of major fabrication sites by the world’s leading tech firms.