ASML Forecasts Strong Fourth-Quarter Sales on AI Demand

Dutch semiconductor equipment maker ASML on Wednesday forecast fourth-quarter sales above analysts’ expectations, supported by strong demand for chipmaking equipment used in the Artificial Intelligence (AI) industry. The company also narrowed its full-year 2026 sales outlook, reflecting a more defined revenue range for the year.

ASML projected fourth-quarter net sales of between €14.2 billion and €15.2 billion ($15.9 billion to $17.0 billion), with a gross margin of approximately 57%. Analysts polled by LSEG had expected sales of €14.19 billion and a gross margin of 55.4%.

The forecast indicates that ASML expects sales to remain strong as semiconductor manufacturers invest in advanced production capacity to meet growing demand for AI chips. The company’s equipment plays a crucial role in producing the increasingly sophisticated semiconductors used in data centres and other AI-related applications.

ASML Narrows Its 2026 Sales Outlook

Alongside its fourth-quarter forecast, ASML narrowed its full-year 2026 net sales outlook to between €44 billion and €45 billion. The company had previously projected annual sales in a wider range of €43 billion to €45 billion.

ASML expects its gross margin for 2026 to be around 56%. The updated sales range maintains the upper end of its previous forecast while raising the lower end, indicating a narrower outlook for annual revenue.

The revised guidance comes as the Semiconductor Industry continues to respond to investment in AI infrastructure. Chipmakers are expanding their capabilities to produce advanced processors, increasing the importance of specialised manufacturing equipment.

ASML’s Technology Is Critical to Advanced Chip Production

ASML is the world’s largest supplier of semiconductor manufacturing equipment and the only company that produces extreme ultraviolet (EUV) lithography machines required to manufacture the most advanced chips.

EUV technology uses extremely short wavelengths of light to create intricate circuit patterns on silicon wafers. These patterns form the foundation of modern processors and other advanced semiconductors, making the technology essential to leading-edge chip production.

Because of its position in the semiconductor supply chain, ASML is closely watched by investors seeking to assess the strength of the global chip industry and the pace of investment in AI computing infrastructure.

AI Investment Supports Semiconductor Equipment Demand

Growing demand for AI applications has encouraged technology companies and data-centre operators to invest in computing infrastructure. That investment has increased the need for advanced chips, prompting semiconductor manufacturers to expand production capacity and pursue more sophisticated manufacturing processes.

ASML’s latest forecast reflects the importance of these industry trends for its business. Demand for advanced chipmaking equipment is closely linked to manufacturers’ investment plans, making the company’s sales outlook an important indicator for the broader semiconductor sector.

However, equipment demand also depends on customers’ spending decisions and the timing of investments in new manufacturing capacity. ASML’s updated guidance provides a clearer range for expected 2026 sales while pointing to continued demand for its technology.

At an exchange rate of $1 to €0.8924, ASML’s projected fourth-quarter net sales range of €14.2 billion to €15.2 billion is equivalent to approximately $15.9 billion to $17.0 billion.