ASML posts record €11.7 billion in sales but warns it can’t keep up with AI demand
Dutch equipment supplier ASML warned on Wednesday that its planned supply of machines will not fully meet customers’ AI-driven demand in 2027 and 2028, as it reported record quarterly sales of around €11.7 billion and lifted the lower end of its full-year sales forecast.
ASML, a Netherlands-based equipment supplier to the semiconductor industry, reported record sales of €11.7 billion in the third quarter, marking its highest-ever quarterly earnings. However, the company warned that its current production plans will not meet customer demand for AI-driven equipment in 2027 and 2028. ASML's CEO, Christophe Fouquet, revealed that the company aims to increase its capacity by 30% in 2027 for both low-NA extreme ultraviolet (EUV) and deep ultraviolet (DUV) immersion machines, with plans to raise it by another 30% in 2028.
The surge in AI investment has led customers to request more tools daily. In the past quarter, ASML's sales increased by 55% to €11.66 billion, surpassing the analysts' average forecast of €11.7 billion. Net income more than doubled to €5 billion, with a gross margin of 57.5%, driven by €3.3 billion in revenue from servicing and upgrading existing machines.
ASML anticipates sales of €44-45 billion in 2026, with a gross margin of around 56%. Despite the positive results, some investors remain concerned about potential downturns in AI spending from 2029 onward.
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