ASML raises guidance on AI demand

ASML, the Dutch semiconductor equipment maker, raised its full-year sales guidance for the second time in 2026, citing surging demand from AI infrastructure investments. The company now expects annual net sales between €43 billion and €45 billion, up from prior guidance of €36-€40 billion, with gross margin improving to 54%-56%. Second-quarter results beat expectations, with net sales of €9.33 billion and net profit of €2.92 billion. ASML plans to boost production capacity for its extreme ultraviolet (EUV) lithography machines by 30% in 2027 and consider another 30% increase in 2028. The company's stock rose over 7% initially, solidifying its position as European Union — Europe's most valuable listed company with a market cap near $700 billion. However, ASML faces geopolitical risks from US-China tech tensions, with China expected to account for about 20% of 2026 sales. The company also announced job cuts of around 1,700 positions earlier in the year.