What happened
ASML reported second-quarter net revenue of €9.33 billion and net income of €2.92 billion, exceeding analyst estimates. Driven by "extremely strong" order intake for AI chips, the company raised its full-year 2026 net revenue forecast to €43-45 billion, a 16% increase at the midpoint from its previous €36-40 billion range. ASML plans to expand capacity for its extreme ultraviolet (EUV) and deep ultraviolet (DUV) tools by 30% annually for the next two years. CEO Christophe Fouquet confirmed Intel will use ASML's new High-NA tool for its advanced "Panther Lake" chips.
Why it matters
ASML's increased revenue forecast and capacity expansion directly address the critical bottleneck in advanced chip manufacturing, impacting procurement teams and foundry operators. The 16% increase in the 2026 revenue forecast signals sustained, high-volume demand for AI-specific silicon, following Micron's recent prediction of an extended chip shortage. This expansion locks in future supply for customers like TSMC, Samsung, and Intel, but also intensifies competition for access to these essential tools, as ASML is the sole maker of EUV equipment.
