European semiconductor shares moved higher after ASML Holding (EU:ASML) increased its full-year guidance for the second time in 2026, reflecting continued strong demand for advanced chipmaking equipment as investment in artificial intelligence infrastructure accelerates.
ASML lifts sales and margin forecasts
ASML shares climbed 5.3 percent in early Amsterdam trading. The positive update also lifted the wider semiconductor sector, with Soitec (EU:SOI) gaining 3.6 percent, Jenoptik (TG:GEN) rising 5.5 percent and BE Semiconductor (EU:BESI) advancing 0.8 percent.
The company now expects annual revenue of between 43 billion euros and 45 billion euros, compared with previous guidance of 36 billion euros to 40 billion euros. Gross margin is forecast to range between 54 percent and 56 percent, up from the earlier expectation of 51 percent to 53 percent.
Chief Executive Christophe Fouquet said:
“AI-related investments and continued progress in AI technologies are driving demand for advanced logic and memory chips, further strengthening the semiconductor industry’s growth outlook.”
Third-quarter guidance exceeds expectations
ASML expects third-quarter revenue of 11.5 billion euros, around 11 percent above the Visible Alpha consensus forecast of 10.37 billion euros.
The company also projected a gross margin of 56 percent for the quarter, comfortably ahead of analysts’ expectations of 52.1 percent.
According to Bank of America, the updated guidance implies fourth-quarter revenue of 14.41 billion euros, compared with the market consensus of 11.62 billion euros. Gross profit is projected at 8.08 billion euros with a 56 percent margin, exceeding consensus estimates of 6.11 billion euros and a 53 percent margin.
The bank’s analysts said ASML delivered:
“robust 2Q results driven by stronger Installed Base Management (IBM) sales & margins.”
AI demand continues to support expansion
Strong demand for memory and storage chips has continued as artificial intelligence investment outpaces supply.
Fouquet said memory-related revenue is expected to increase by 75 percent this year, highlighting continued demand for ASML’s manufacturing equipment. He also noted that the company is close to securing all the orders required for next year’s extreme ultraviolet lithography systems and is considering increasing production capacity.
ASML is evaluating a roughly 30 percent increase in EUV system output during 2027, followed by a further 30 percent expansion in 2028, after customers placed substantial orders well in advance.
For the second quarter, ASML reported revenue of 9.33 billion euros, up from 7.69 billion euros a year earlier and above analyst expectations of 8.83 billion euros.
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