Prime Highlights
- ASML’s shares surged after the company reported strong orders and expressed confidence in sustained growth driven by rising AI-related chip demand.
- The company’s positive outlook for 2026 and long-term investments by chipmakers signal continued momentum in the global semiconductor industry.
Key Facts
- ASML recorded fourth-quarter net sales of €9.7 billion, slightly above market expectations, while net profit stood at €2.84 billion.
- The company announced a €12 billion share buyback program scheduled to run until the end of 2028, underlining its strong financial position.
Background:
Shares of Dutch semiconductor equipment maker ASML rose sharply on Wednesday after the company reported record orders and issued stronger-than-expected sales guidance for 2026, underlining the continued impact of the global artificial intelligence boom on the chip industry.
ASML said bookings for the fourth quarter of 2025 reached €13.2 billion, more than double market expectations and the highest quarterly order intake in the company’s history. The order figure was far higher than analyst expectations of about €6.3 billion, showing strong demand from chipmakers expanding their advanced manufacturing facilities.
ASML said it expects total sales to reach between €34 billion and €39 billion in 2026, with the midpoint higher than market forecasts. ASML said its revenue in 2026 is not expected to be lower than in 2025, pointing to growth of at least 20% compared with 2024. This points to increased confidence in the company’s future growth.
ASML continues to benefit from rising demand for AI-related chips. Strong results from major customers such as Taiwan Semiconductor Manufacturing Co. support this trend. Analysts also expect memory chipmakers like Samsung and SK Hynix to increase production to ease a global shortage, which could lead to higher demand for ASML’s chipmaking machines. Barclays recently forecast that SK Hynix could purchase 12 of ASML’s extreme ultraviolet (EUV) machines in 2026.
Revenue from EUV systems is expected to rise significantly next year as chipmakers expand production of advanced semiconductors. ASML’s management said customers have become more confident about medium-term demand, particularly for AI infrastructure.
However, challenges remain. ASML said it plans to cut around 1,700 jobs, mainly in the Netherlands, to improve efficiency. The company also expects China’s share of revenue to decline to about 20% in 2026 due to export restrictions on advanced equipment.
Overall, the results signal strong momentum for ASML as AI-driven investment continues to reshape the global semiconductor industry.
