AI demand to exceed supply for 2 more years, says ASML

ASML, the global leader in semiconductor manufacturing equipment, has raised its sales forecast for 2026 following a surge in demand for AI-driven technologies. The Dutch firm now anticipates full-year net sales between 44 billion euros and 45 billion euros, up from the initial estimate of 43 billion euros to 45 billion euros.

CEO Christophe Fouquet attributed the increased demand to customers' expectations for the scale and duration of AI-related investments. He revealed that some clients are already considering orders for 2029 and 2030, indicating a long-term outlook for the company's products. However, ASML's existing plans for 2027 and 2028 production capacity may not be sufficient to meet the anticipated demand.

The company is currently exploring options to expand its production capacity beyond a previously announced 30% increase for 2028. In the third quarter, ASML recorded net sales of 11.66 billion euros, marking a significant rise from 9.33 billion euros in the previous quarter. Net income also increased to 4.96 billion euros from 2.92 billion euros, with a gross margin improving to 57.5% from 54%.

ASML expects fourth-quarter net sales to range between 14.2 billion euros and 15.2 billion euros, maintaining a gross margin close to 57%.