Strong forecasts from ASML and TSMC this week point to another quarter of hefty spending by American cloud-computing giants as they race to secure advanced chips needed for their artificial intelligence build-outs.
ASML Holding N.V. (ASML) Q1 2026 Earnings Call Transcript
The semiconductor equipment business keeps humming along the AI boom, where every new data center and accelerator chip demands ever-more-precise tools to shrink transistors.
UBS's prediction of a muted share price reaction to ASML Holding NV's (NASDAQ:ASML, XETRA:ASME) first-quarter results proved prescient, with the stock trading sideways after the numbers fell broadly in line with buy-side expectations. That said, the Dutch semiconductor equipment maker's upgraded full-year guidance should drive modest upward revisions to consensus forecasts, the Swiss bank noted.
ASML Holding N.V. (ASML) Q1 2026 Earnings Call Transcript
“The supply will not meet the demand for the foreseeable future”, was how ASML's chief executive officer, Christophe Fouquet, characterized the prospects for his company in 2026, after announcing a beat and a raise for the first quarter.
ASML Holding NV (NASDAQ:ASML, XETRA:ASME), Europe's largest company by market capitalisation, has raised its full-year sales forecast and reported a sharp rise in first-quarter profits, as surging AI-related investment drives accelerating demand for its semiconductor manufacturing equipment. Shares were little changed on Wednesday, having already gained nearly 7% in the run-up to the results and 31% since the start of the year.
ASML is rated Buy with a $1,680 target, driven by robust AI-fueled semiconductor equipment demand and a dominant EUV lithography position. Strong order pipeline from memory and logic chipmakers is expected to keep ASML at full capacity through 2027, with EUV sales surpassing 50% of the mix post-2026. ASML's financials remain resilient: guided gross margin of 51–53% in 2026, high sales visibility, and accelerating earnings growth as product mix shifts to higher-margin EUV systems.
The group, which counts TSMC, Samsung and Intel among its clients, raised its sales guidance as chip makers continue to plow billions into its semiconductor-making machines.
European stocks are expected to open in mixed territory on Wednesday as regional traders assess the trajectory of the U.S.-Iran war.
ASML raised its 2026 revenue outlook on Wednesday as demand for artificial intelligence chipmaking tools continues to rise.
ASML (ASML) is set to post earnings Wednesday morning, with traders anticipating the stock could reach a record high following the results.