ASML said customers are already looking to place orders for 2029 and 2030, easing concerns that the AI investment boom was losing momentum. The company also raised its full-year sales outlook and plans to add capacity and raise prices.
ASML said on Wednesday that customers were already looking to place orders for its advanced chipmaking tools for 2029 and 2030. The Dutch company is the biggest maker of tools used to make AI chips and advanced semiconductors. Its outlook eased concerns among investors that AI-related spending could be nearing a peak.
Orders stretch to 2030
CEO Christophe Fouquet said ASML was now seeing a lot of order intake for 2028, with strong interest in placing orders for 2029 and sometimes even 2030. Demand has been fuelled by the AI boom, with customers including TSMC, Samsung and Intel investing heavily to increase chip production.
ASML shares, which rose 2% on Wednesday, have gained almost 70% so far this year. KBRA European macro strategist Gordon Kerr said there were concerns that the AI trade was running out of steam, and that ASML's results showed demand for chips remains strong.
Higher sales outlook and bigger capacity plans
ASML reported third-quarter net profit of €4.96 billion on net sales of €11.7 billion. It forecast fourth-quarter sales of €14.2 billion to €15.2 billion and lifted its full-year sales outlook from at least €43 billion to €44-45 billion.
The company is now looking to boost capacity further. In July, ASML said it would increase capacity in 2027 by 30% and again by 30% in 2028, but Fouquet said on Wednesday that this would not be enough.
CFO Roger Dassen said ASML will address the shortage by upgrading existing tools and selling new versions of its machines with higher throughput. He also said the company will increase prices starting in 2027, with the full effect visible from 2028.
What analysts watch next
Ben Barringer, head of technology research at Quilter Cheviot, said durable growth will continue into 2027 and 2028. However, he added that the market will begin asking whether there will be any sign of a downturn from 2029.
Source: Reuters via Investing.com
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