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What happened: ASML (ASML) stock jumped more than 3% on Wednesday in premarket trading.
What’s behind the move: The Dutch chip-equipment maker reported better-than-expected second quarter results and raised its full-year sales outlook as it expands production capacity to meet surging demand driven by the AI-fueled semiconductor boom.
“If we look at the market demand, the end market demand, this has motivated our customer to increase their capex but also accelerate all their plans,” CEO Christophe Fouquet said.
ASML now expects 2026 net sales of about $49.2 billion to $51.5 billion, well above the roughly $45 billion average analyst estimate compiled by Bloomberg and above the high end of its previous guidance.
Orders for the company’s EUV lithography machines, which are essential for manufacturing chips used in AI applications and data centers now stretch into 2028.
“What we also see for both Logic and DRAM is that our customer are getting long-term agreement with their own customer, which really invite them to commit for the long term because they have what I will call a quite unprecedented visibility on what will happen to the market,” Fouquet said.
“This has also translated practically into very strong order booking through the first half of 2026,” he said.
What else you need to know: ASML’s results offer another sign that investment in AI infrastructure remains robust, as leading chipmakers continue spending heavily on the advanced lithography equipment needed to manufacture cutting-edge processors and memory chips. Its customers include Taiwan Semiconductor Manufacturing Co. (TSMC), Intel (INTC), SK Hynix (SKHY), and Micron Technology (MU).
“Customers in the current environment, whatever they can do to increase productivity, they will take it, particularly if it’s instant upgrade of productivity,” ASML CFO Roger Dassen said during the earnings call.
ASML shares have gained more than 65% this year as the AI-driven semiconductor rally has boosted demand for advanced manufacturing equipment.
Ines Ferre is a Senior Business Reporter for Yahoo Finance covering the US stock market, publicly traded companies, and commodities.
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