ASML, the Dutch maker of semiconductor lithography systems, reported a third quarter that exceeded analyst expectations: net profit was €4.96 billion versus analysts' €4.1 billion estimate. Third-quarter revenue came in at €11.66 billion, in line with forecasts.
According to the company’s Wednesday report, demand is being driven primarily by investments related to artificial intelligence, and orders are so strong that some customers are already considering bookings for 2029 and 2030.
Guidance and capacity planning
ASML narrowed its full-year revenue guidance to a range of €44–45 billion, raising the previous lower bound of €43 billion. For the fourth quarter the company expects revenue between €14.2 billion and €15.2 billion; the upper end of that range is above analyst consensus.
CEO Christophe Fouquet said customers are increasing demand both in the short and medium term due to AI-related investments. He also warned that the capacities currently planned for 2027 and 2028 will not fully satisfy customer needs. As a result, ASML is examining options to expand its 2028 capacity beyond the previously announced 30% increase.
Customers, technology and China exposure
During the quarter, both Samsung and Taiwan Semiconductor Manufacturing Company (TSMC) committed to ASML’s next-generation High-NA EUV (extreme ultraviolet) lithography machines. Analysts consider that technology a key driver of the company’s future growth.
ASML expects China to account for roughly 20% of its total revenue, consistent with earlier guidance. However, U.S. export controls continue to bar sales of EUV and certain DUV systems to China.
Separately, media reports have suggested an unnamed Chinese company has begun producing its own DUV equipment, but analysts remain skeptical about China’s near-term ability to catch up in this field.
Market impact and shares
ASML's shares have risen about 56% year-to-date. The quarterly results and customer commitments to High-NA technology could reinforce investor confidence in the company's long-term growth prospects.
This article does not constitute investment advice.
