AI chip firm ASML raises forecast and vows to boost output

By the Editorial Team · Thursday, July 16, 2026

ASML has raised its 2026 sales forecasts and announced plans to increase production capacity by 30% annually over the next two years due to strong demand for its advanced chip-making equipment driven by AI growth. As the sole supplier of critical EUV lithography machines, this expansion aims to prevent supply bottlenecks that could slow the development of AI technologies powering major data centers and AI firms.

ASML, the Dutch manufacturer of advanced chip-making equipment, has raised its sales forecasts for 2026 and announced plans to expand production capacity significantly in response to strong demand driven by the growth of artificial intelligence (AI) technologies. The company’s second forecast increase this year came alongside robust second-quarter earnings that exceeded analyst expectations.

For the three months ending June 30, ASML reported revenue of €9.33 billion, surpassing estimates of €8.80 billion, while net income reached €2.92 billion, above the forecasted €2.62 billion. The positive financial results pushed ASML’s shares up 2.7 percent on the Amsterdam stock exchange before a slight later decline. The stock has gained roughly 75 percent since the beginning of the year.

ASML’s chief executive officer, Christophe Fouquet, described customer demand for lithography machines as “extremely strong” and said the company will increase its capacity by 30 percent annually over the next two years. This expansion aims to address concerns about potential bottlenecks in chip production that could hinder the ongoing AI-driven surge in technology deployment.

The company is the world’s sole supplier of extreme ultraviolet lithography (EUV) machines, which are essential in producing the nanometre-scale circuitry found in the most advanced logic and memory chips. These chips power data centers operated by firms like Google and Amazon and underpin AI systems developed by companies such as OpenAI and Anthropic.

ASML’s improved outlook now foresees full-year net revenue between €43 billion and €45 billion in 2026, up from an earlier projection of €36 billion to €40 billion. Analysts from JPMorgan noted that the strong results could help ASML narrow its valuation gap relative to its U.S. industry peers.

Market observers have closely monitored ASML’s performance due to its critical role in the semiconductor supply chain and the tech sector’s recent volatility amid debates about the sustainability of the AI investment boom. The company’s confidence in rising demand and production scaling efforts sends a positive signal amid concerns that supply constraints might limit AI development.

Overall, ASML’s upward revision of forecasts and capacity enhancement plans reflect the broader trend of accelerating chip demand tied to AI expansion and data center growth worldwide.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.