ASML, the world's largest supplier of chipmaking tools and Europe's most valuable company, has significantly lifted its 2026 revenue outlook to between €36 billion and €40 billion, up from a previous forecast of €34 billion to €39 billion. This upward revision, which analysts had estimated at €37.7 billion, comes as strong demand for artificial intelligence chips prompts companies like TSMC, Samsung, Intel, and SK Hynix to accelerate their capacity expansion plans. ASML's CEO, Christophe Fouquet, stated that demand for chips is currently outpacing supply, leading to a substantial influx of new orders.
For the first quarter of 2026, ASML reported stronger-than-expected earnings, with total net sales climbing 13% year-on-year to €8.8 billion, exceeding analyst forecasts of €8.69 billion. Net profit also rose 17% to €2.8 billion, beating market expectations. The company's CFO, Roger Dassen, noted that even legacy lithography systems are seeing increased sales, fueled by memory-chip shortages impacting PC, smartphone, and game console prices. ASML's shares have surged approximately 40% this year, reflecting investor confidence in its role as a key "picks-and-shovels" provider for the AI boom.
Despite the positive outlook, ASML faces challenges, including potential supply chain constraints and the possibility of tighter U.S. export restrictions on its advanced chipmaking equipment to China. The company currently anticipates 20% of its sales to go to China this year, but new restrictions could push sales towards the lower end of its guidance. Fouquet mentioned that the updated 2026 guidance range accommodates potential outcomes of ongoing discussions regarding export controls. ASML is also working with suppliers, such as Zeiss, to increase production and expects to ship 60 of its bestselling low-NA EUV tools in 2026, a 25% increase from 2025, with capacity rising to 80 in 2027.
