Apple<\/a>. It is the sole maker of extreme ultraviolet (EUV) lithography systems, which are essential to producing the most advanced AI chips.<\/p>\n“We’re investing in the picks and shovels of the AI revolution,” said equity investment director Richard Carlyle of Capital Group, whose funds hold just over 3% of ASML’s shares. He said his firm is closely watching EUV shipment volumes.<\/p>\n
CAN ASML KEEP UP WITH DEMAND?<\/p>\n
Analysts expect \u200ca strong quarter and see scope for ASML \u2060to raise its 2026 sales outlook, as memory-chip makers expand capacity to meet AI-driven demand.<\/p>\n
Core challenges include whether ASML can keep up with demand for its chip-making tools, which can take more than a year to build, \u2060and whether potential new restrictions on exports to China could curb growth.<\/p>\n
ASML has forecast first-quarter sales of 8.2 billion to 8.9 billion euros, up from 7.7 billion euros a year earlier, and full-year revenue of 34 billion to 39 billion euros ($40 to $46 billion), compared with 32.7 billion euros in 2024. LSEG-polled \u200banalysts \u200bexpect 8.5 billion euros in first-quarter revenue and 37.6 billion euros for the \u200byear.<\/p>\n
Several analysts told Reuters they expect ASML to land \u200cnear the top end of those ranges as customers rush to install previously ordered machines or upgrade existing ones.<\/p>\n
“It’s no secret that the quarter will be strong”, Morningstar analyst Javier Correonero said. “We’ve had a lot of incremental positive news in the last month, like SK Hynix buying $8 billion in (ASML tools), or Samsung placing around $4-5 billion in orders”.<\/p>\n
U.S. RULES MAY CURB EXPORTS TO CHINA<\/p>\n
ASML discontinued reporting new bookings after last quarter, saying they caused unneeded volatility in its share price on earnings days.<\/p>\n
Analysts say that will put more focus on ASML’s own sales forecasts, which may \u200cbe lifted to the top half of its 2026 range.<\/p>\n
Longer-term growth assumptions of \u200b6% to 13% annual sales through 2030 were based on the global chip market \u200breaching $1 trillion in annual sales only at the end of \u200bthat period – a milestone that most now expect the industry to pass this year.<\/p>\n
ASML is also a major \u200csupplier of less advanced deep ultraviolet (DUV) tools, where it faces \u200bcompetition from Japan’s Nikon and China’s \u200bSMEE. Bernstein analyst David Dai said there were questions about whether ASML could keep up with demand in both product lines but “DUV, I’d argue is a bigger constraint”.<\/p>\n
China is a growing uncertainty for ASML. The country generated around one\u2011third of group sales in \u200b2025, but that contribution is expected to fall \u200cto about 20% this year under existing export limits.<\/p>\n
Analysts said new curbs proposed by U.S. Congress, if applied in their \u200bstrictest form, could eliminate less than half of ASML’s residual China sales.<\/p>\n
($1 = 0.8533 euros)<\/p>\n
(Reporting by Toby Sterling in Amsterdam \u200band Nathan Vifflin in Gdansk. Editing by Adam Jourdan and Louise Heavens)<\/p>\n","protected":false},"excerpt":{"rendered":"By Toby Sterling and Nathan Vifflin AMSTERDAM, April 14 (Reuters) – Investors in, Europe\u2019s most valuable listed company,…\n","protected":false},"author":2,"featured_media":391538,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,3186,85,46,125],"class_list":{"0":"post-391537","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-asml","12":"tag-il","13":"tag-israel","14":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/391537","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=391537"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/391537\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/391538"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=391537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=391537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=391537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}