ASML, the Dutch semiconductor equipment giant, reported third-quarter profit that significantly exceeded expectations, with net profit reaching 4.96 billion euros compared to the 4.1 billion euros anticipated by LSEG consensus estimates [1]. Net sales for the quarter were 11.66 billion euros, slightly below the expected 11.72 billion euros [1]. The company also raised the lower end of its full-year revenue forecast, now expecting net sales between 44 billion and 45 billion euros ($49.3 billion to $50.4 billion), up from the previous lower bound of 43 billion euros [1]. For the fourth quarter, ASML projects net sales between 14.2 billion and 15.2 billion euros, with the upper end surpassing LSEG consensus estimates [1].
ASML revealed that some customers are expressing interest in placing orders for its critical semiconductor tools for 2029 and 2030, highlighting robust long-term demand fueled by AI-related investments [1]. CEO Christophe Fouquet stated that customers are increasing their short- and medium-term equipment demand forecasts, and current supply plans for 2027 and 2028 will not fully meet this demand [1]. As a result, ASML is exploring ways to boost its 2028 capacity beyond the previously forecasted 30% increase [1].
During the quarter, both Samsung and TSMC, the world's two largest chipmakers, committed to using ASML's next-generation High NA extreme ultraviolet (EUV) lithography machines, which analysts view as crucial for the company's future growth [1]. ASML is the sole producer of EUV lithography machines, essential for manufacturing advanced semiconductors [1]. The company reiterated its expectation that China sales will account for 20% of its total business, maintaining its prior forecast [1].
Shares of ASML have rallied 56% this year, reflecting investor confidence in the company's growth prospects amid strong AI-driven demand for semiconductor manufacturing equipment [1].
CONCLUSION
ASML's strong third-quarter profit and raised revenue forecasts underscore the company's pivotal role in the semiconductor industry, driven by surging AI demand. Long-term order interest through 2030 and commitments from major chipmakers like Samsung and TSMC signal sustained growth momentum. The market response has been highly positive, as reflected in ASML's significant share price rally.