By Nathan Vifflin and Toby Sterling
AMSTERDAM, April 15 (Reuters) – ASML, the world’s largest supplier of chipmaking tools, on Wednesday reported stronger-than-expected first-quarter earnings and lifted its 2026 revenue outlook as artificial intelligence boosts demand for its equipment.
The stronger forecast underscores the rapid expansion of the global market for AI and a resulting data-centre boom that is straining supply chains and turbocharging chipmaker valuations.
“Demand for chips is outpacing supply,” CEO Christophe Fouquet said in a statement, flagging an influx of new orders to ASML in the past quarter. “Our customers are accelerating their capacity expansion plans for 2026 and beyond.”
ASML LIFTS REVENUE FORECAST
The Veldhoven, Netherlands-based firm, Europe’s most valuable by market capitalisation, said 2026 revenue will now be between 36 billion and 40 billion euros ($42 billion-$47 billion), up from a previous forecast of 34 billion to 39 billion euros.
Analysts had forecast the figure at 37.7 billion euros, LSEG data show. Shares rose 1.2% in early trading in Amsterdam, briefly touching a new record high above 1,300 euros ($1,532).
Investors say they view ASML as a “picks-and-shovels” play on AI, as it supplies key equipment to chipmakers such as TSMC, which in turn produces processors for Nvidia and Apple.
Other top ASML customers include memory chip makers Samsung and SK Hynix of South Korea, and Micron and Intel of the U.S.
ASML’s shares have risen 40% so far this year amid the rapid construction of data centres and a shortage of memory chips, both of which contribute to demand for ASML products.
However, there are physical limits to how quickly new chip plants can be built, and analysts see ASML’s valuation as already high.
EXPORT RESTRICTIONS
Key challenges facing the firm include supply chain constraints and the possibility of new restrictions on its ability to ship tools to China proposed by U.S. Congress in legislation called the “MATCH Act”.
CFO Roger Dassen said the company currently still expects 20% of sales to go to customers in China this year, but if the restrictions materialize, it could drag sales toward the low end of company guidance.
However “some of that demand could be absorbed by other customers in the current market”, he told journalists on a post-earnings call.
ASML AIMS TO SHIP 25% MORE OF ITS BESTSELLING TOOLS IN 2026
Addressing potential concerns about ASML’s ability to keep up with demand, Dassen said the company should be able to ship 60 of its bestselling low-NA EUV tools in 2026 – 25% more than in 2025 – and will have capacity to ship 80 in 2027.
He said the company has been working closely with key supplier Zeiss of Germany to increase production of both its EUV and DUV tools.
ASML is the only maker of EUV, or extreme ultraviolet lithography tools, which can cost $300 million each and use lasers to create the tiny circuitry of advanced chips. It competes with Nikon of Japan and SMEE of China in its slightly less-advanced DUV tool range.
First-quarter earnings were 2.76 billion euros on sales of 8.76 billion euros. That was up from 2.36 billion euros on sales of 7.74 billion euros in the first quarter of 2025.
($1 = 0.8483 euros)
(Reporting by Toby Sterling in Amsterdam, Nathan Vifflin in Gdansk; Editing by Milla Nissi-Prussak, Adam Jourdan and Jan Harvey)
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