ASML (EU:ASML), the world’s largest supplier of semiconductor manufacturing equipment, reported a sharp rebound in fourth-quarter orders, far exceeding market expectations as customers stepped up investment in artificial intelligence-related chip capacity.
The company also announced plans to reduce its workforce by around 1,700 roles, equivalent to 3.8% of total staff. The cuts will be concentrated mainly in the Netherlands and the United States and will largely affect management positions.
Fourth-quarter orders — a key barometer for demand across the chipmaking industry — climbed to €13.2 billion, up from €5.4 billion in the previous quarter. The figure came in well ahead of the €6.32 billion consensus forecast compiled by Visible Alpha.
“In recent months, many of our clients have shared a significantly more positive assessment of the medium-term market situation, based primarily on stronger expectations regarding the sustainability of AI-related demand,” said Christophe Fouquet, CEO of ASML.
The surge in orders reflects accelerating capital expenditure by ASML’s customers as they expand capacity for AI-focused logic and memory chips. Demand is being driven by hyperscale cloud providers such as Microsoft, Amazon and Google, which continue to invest heavily in infrastructure to support AI workloads.
Alongside the strong order intake, the Dutch group upgraded its medium-term outlook. ASML now expects annual sales in 2026 to range between €34 billion and €39 billion, compared with analysts’ expectations of around €35 billion, according to LSEG data. Previously, the company had guided for sales to be broadly flat or slightly higher than 2025 levels, when revenue reached €32.7 billion.
The updated guidance underscores ASML’s growing exposure to AI-driven semiconductor investment, even as it moves to streamline its cost base through targeted workforce reductions.
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