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. 

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.