AMSTERDAM, April 14 (Reuters) – Investors in ASML, Europe’s most valuable publicly traded company, are betting that the chipmaker can improve results when it reports first-quarter earnings on Wednesday, as demand for artificial intelligence microprocessors keeps orders for its machines high.
The Dutch company’s shares have risen more than 40% so far this year, driven by the rapid construction of data centers and growing demand for next-generation chips from customers like Nvidia.
ASML supplies lithography machines to chipmakers, including TSMC, which makes processors for Nvidia and Apple. ASML is the only manufacturer of extreme ultraviolet (EUV) lithography systems, which are essential for producing the most advanced AI chips.
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“We are investing in the picks and shovels of the AI revolution,” said chief equity investment officer Richard Carlyle of Capital Group, whose funds hold just over 3% of ASML shares.
TOO MUCH DEMAND?
Analysts expect a strong quarter and see room for ASML to increase its 2026 sales forecast as memory chipmakers expand capacity to meet AI-driven demand.
Key challenges to this include whether ASML can keep up with demand for its chipmaking tools, which could take more than a year to build, and whether potential new restrictions on exports to China could curb this growth.
ASML forecast first-quarter sales of €8.2 billion to €8.9 billion, up from €7.7 billion last year, and full-year revenue of €34 billion to €39 billion, compared with €32.7 billion in 2024. Analysts polled by LSEG expect €8.5 billion in revenue in the first quarter and €37.6 billion for the year on average. Several analysts told Reuters they expect ASML to come close to the upper end of these ranges.
“It’s no secret that the quarter will be strong,” said Morningstar analyst Javier Correonero. ‘We’ve had a lot of incremental positive news over the last month, like SK Hynix buying $8 billion worth of (ASML tools), or Samsung placing around $4 billion to $5 billion worth of orders.’
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