Dutch semiconductor equipment giant ASML is expected to post a stronger outlook as major chipmakers accelerate capacity expansion to meet rising demand from artificial intelligence companies. The firm is scheduled to announce its third-quarter earnings on Wednesday, with investors closely watching signs of recovery across the global chip sector.
ASML’s key customers, including TSMC and SK Hynix, are reportedly preparing to ramp up production capacity in 2026 and beyond. The company’s shares have already risen 32 per cent since early September, outpacing the 15 per cent gain recorded by the Philadelphia Semiconductor Index during the same period.
In July, ASML’s management had expressed uncertainty about revenue growth in 2026 due to weaker demand from Samsung and Intel. However, a wave of AI megadeals has since fuelled optimism for large-scale data centre expansion, boosting investor sentiment across the semiconductor industry.
Analysts surveyed by market research firms expect ASML to record new bookings worth 5.36 billion euros in the third quarter, compared with 9.48 billion euros in the first half of 2025. Net income is projected to rise by 1.4 per cent year-on-year to 2.11 billion euros.
Several major technology companies, including Meta and Oracle, have announced supply deals with NVIDIA, AMD, Intel, and Samsung, signalling a surge in demand for ASML’s advanced lithography tools used to build high-performance chips. “It is clear that the sentiment has changed. Management will need to give some indication of what they are seeing in the market,” said an analyst from a global research firm.
Analysts are also looking for clarity on how quickly chipmakers can speed up plant construction. “Every memory chipmaker is likely to increase production capacity for AI, including Micron, SK Hynix, Samsung, and even Chinese players,” said another analyst.
ASML’s tools, which cost over $300 million each, are the most expensive equipment in chip fabrication and typically require 8 to 12 months for delivery. During the pandemic, the company faced a massive order backlog due to high demand and limited capacity. It has since ramped up production to address the growing needs of chipmakers.
Top customer TSMC, which manufactures nearly all advanced AI chips, is expected to increase its purchases, while Intel’s outlook has also shown signs of improvement.
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