ASML on Wednesday raised its guidance for the second time this year as its customers continue to ramp up production capacity of AI chips.
The Dutch semiconductor-equipment maker said it now expects full-year sales to come in between 43 billion euros ($49 billion) and 45 billion euros, and a gross margin of between 54 and 56%. It previously predicted annual net sales of between 36 billion and 40 billion euros, and a gross margin between 51% and 53%.
ASML had already raised its guidance last quarter on continued demand for its highest-end EUV machines — the only tools in the world capable of the lithography needed to make the most advanced chips used for AI.
That demand is expected to remain high as chipmakers expand production capacity to meet the needs of the AI boom.
Earlier this week, Taiwan Semiconductor Manufacturing Co (TSMC), one of ASML’s largest customers, reported a 68% jump in June sales on the back of strong demand for its chips.
TSMC is planning to add two advanced chip packaging plants in the Chiayi Science Park in southern Taiwan, Reuters reported, citing remarks made by Taiwan’s National Science and Technology Council Minister Wu Cheng-wen on Sunday.
UBS analysts said in a July 10 note that the buildout in semiconductor fabrication facilities, as well as AI-driven demand for leading-edge chip production, is expected to help ASML see a stronger second half of the year.
Despite robust demand, semiconductor stocks have come under pressure as investors question whether the huge AI-driven capital spending can be sustained. ASML also faces tightening restrictions on export controls of its advanced chip equipment.
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