Dutch chip-equipment giant ASML on Wednesday reported third-quarter results ahead of analyst expectations and said demand for its chip-printing tools is so strong that it will not be able to fully meet customer orders in 2027 or 2028.
Above-estimate results, tighter outlook
ASML guided fourth-quarter net sales of €14.2–€15.2 billion ($15.9–$17.0 billion) with gross margin of around 57 per cent, ahead of the LSEG analyst poll of €14.19 billion in sales and 55.4 per cent margin. It narrowed its full-year 2026 sales outlook to €44–€45 billion, from €43–€45 billion, with gross margin of around 56 per cent.
For the third quarter, the company posted net profit of €4.96 billion on net sales of €11.7 billion, beating analyst expectations of €4.05 billion in profit.
A capacity crunch at the heart of the AI buildout
Chief executive Christophe Fouquet said customers are already booking orders for 2028, with strong interest in placing orders for 2029 and sometimes even 2030, and that discussions are shifting "beyond 2027."
In July, ASML said it would raise capacity 30 per cent in 2027 and another 30 per cent in 2028. Fouquet now says that will not be enough. The company broke ground on its Eindhoven expansion last month, with the first phase scheduled for completion in 2029, and is also upgrading existing tools and developing higher-throughput machines. Price increases are planned from 2027, taking full effect in 2028.
Customers named by the company include TSMC — which makes chips for Nvidia — along with Samsung, Intel, SK Hynix, Micron and Elon Musk's TeraFab, on which chief financial officer Roger Dassen said the company was "still kicking the tyres on the exact size of that opportunity."
ASML is the only maker of the extreme ultraviolet machines needed for the most advanced chips. It has a market value of about €586 billion ($657 billion) and its shares have risen nearly 70 per cent this year, climbing nearly 3 per cent in Amsterdam trading on Wednesday.
Sources: ASML will be unable to meet AI-driven customer demand in 2027, 2028 — CNA/Reuters | ASML forecasts Q4 sales above expectations on AI chip demand — CNA/Reuters
Above-estimate results, tighter outlook
ASML guided fourth-quarter net sales of €14.2–€15.2 billion ($15.9–$17.0 billion) with gross margin of around 57 per cent, ahead of the LSEG analyst poll of €14.19 billion in sales and 55.4 per cent margin. It narrowed its full-year 2026 sales outlook to €44–€45 billion, from €43–€45 billion, with gross margin of around 56 per cent.
For the third quarter, the company posted net profit of €4.96 billion on net sales of €11.7 billion, beating analyst expectations of €4.05 billion in profit.
A capacity crunch at the heart of the AI buildout
Chief executive Christophe Fouquet said customers are already booking orders for 2028, with strong interest in placing orders for 2029 and sometimes even 2030, and that discussions are shifting "beyond 2027."
In July, ASML said it would raise capacity 30 per cent in 2027 and another 30 per cent in 2028. Fouquet now says that will not be enough. The company broke ground on its Eindhoven expansion last month, with the first phase scheduled for completion in 2029, and is also upgrading existing tools and developing higher-throughput machines. Price increases are planned from 2027, taking full effect in 2028.
Customers named by the company include TSMC — which makes chips for Nvidia — along with Samsung, Intel, SK Hynix, Micron and Elon Musk's TeraFab, on which chief financial officer Roger Dassen said the company was "still kicking the tyres on the exact size of that opportunity."
ASML is the only maker of the extreme ultraviolet machines needed for the most advanced chips. It has a market value of about €586 billion ($657 billion) and its shares have risen nearly 70 per cent this year, climbing nearly 3 per cent in Amsterdam trading on Wednesday.
Sources: ASML will be unable to meet AI-driven customer demand in 2027, 2028 — CNA/Reuters | ASML forecasts Q4 sales above expectations on AI chip demand — CNA/Reuters
