ASML Holding NV has raised its 2026 sales outlook for the third consecutive quarter, citing growing investment in artificial intelligence infrastructure.
The Netherlands-based company now expects annual sales of €44 billion to €45 billion, up from a previous lower bound of €43 billion.
ASML is the only manufacturer of the most advanced lithography machines used to produce semiconductors for AI data centers.
Its outlook offers a window into investment plans at major chipmakers including Taiwan Semiconductor Manufacturing Co., Samsung Electronics Co. and Intel Corp.
Quarterly Results and Capacity Constraints
Net sales for July to September reached €11.66 billion, slightly below the average analyst estimate of €11.7 billion compiled by Bloomberg.
Despite the narrow shortfall, the higher annual forecast reflects sustained demand for equipment supporting AI computing expansion.
ASML's long manufacturing lead times make its results a useful indicator of future semiconductor industry investment.
The company typically requires more than a year between receiving an order and delivering its advanced equipment.
Capacity constraints remain a challenge as customers seek additional equipment.
In July, ASML announced plans to increase production capacity by 30% next year for its low NA extreme ultraviolet lithography machine, targeting approximately 85 annual shipments.
The company has warned that planned production increases will not be sufficient to satisfy all demand in 2027 and 2028.
Chief Executive Officer Christophe Fouquet said some customers are already looking beyond those years as they plan future manufacturing capacity.
"Some customers are expressing an interest in placing orders with us for 2029 and even 2030," Fouquet said.
"We are investigating ways to increase capacity for 2028 beyond the 30% increase we previously communicated," he added.
ASML is also working to shorten production cycle times, reducing the period between starting work in its clean rooms and shipping completed machines.
The company has begun construction of a second industrial campus in the Netherlands, with the first phase scheduled for completion in 2029.
Questions about the durability of AI-related investment have contributed to volatility across the semiconductor sector.
Semiconductor stocks experienced a global selloff during the week after Broadcom Inc. CEO Hock Tan compared investor sentiment toward the industry to a casino.
