ASML boosts outlook to €40B as semiconductor optimism grows

ASML raised its 2026 sales forecast on Wednesday after the Dutch chip equipment company beat first quarter estimates on both revenue and profit.

ASML said it now expects 2026 net sales of 36 billion euros to 40 billion euros, up from its earlier view of 34 billion euros to 39 billion euros. In the first quarter, ASML posted 8.8 billion euros in net sales, above the 8.5 billion euros expected by LSEG.

Net profit came in at 2.8 billion euros, ahead of the 2.5 billion euros analysts expected. ASML had earlier said first quarter sales would likely land between 8.2 billion euros and 8.9 billion euros.

ASML’s CEO Christophe Fouquet said in a press release, “The semiconductor industry’s growth outlook continues to solidify, driven by ongoing AI-related infrastructure investments.” He also said, “Demand for chips is outpacing supply. In response, our customers are accelerating their capacity expansion plans for 2026 and beyond, supported by long-term agreements with their customers.” ASML shares were flat in early trading in Europe. This was also the first quarter in which ASML did not publish order numbers, a figure investors usually watch closely.

Christophe said on Wednesday that the company’s order intake “continues to be very strong.” ASML is widely watched because it builds the machines used to make the most advanced semiconductors.

TSMC, Samsung, and SK Hynix push ASML demand higher

The chip market has maintained its high demand over the past year. The world’s largest chip maker, Taiwan Semiconductor Manufacturing Co. (TSMC), which is also one of ASML’s biggest customers, reported record first quarter revenue last week as demand for AI chips stayed strong.

Memory is also still tight. A shortage of memory chips has pushed prices for that part of the market to very high levels. Those chips are critical for AI systems and data centers, so manufacturers are now preparing to add more output.

South Korean chipmakers Samsung and SK Hynix are planning to raise production capacity, and that means more need for ASML machines.

Another signal came from Germany through chip systems maker Aixtron, raising its 2026 revenue guidance on Tuesday after stronger demand for optoelectronics equipment. The company now expects yearly revenue of about 560 million euros, plus or minus 30 million euros, when its earlier forecast was 520 million euros with the same margin on either side.

Aixtron’s CEO Felix Grawert said, “The significantly stronger-than-expected demand from the optoelectronics sector in the first quarter is a very encouraging development,” and added that the company expects that trend to continue.

Aixtron’s stock, already up by over 100% so far in 2026, surged by yet another 13% on Wednesday and led gains on Europe’s Stoxx 600. Analysts at J.P. Morgan pointed to strong quarterly orders tied to momentum in optoelectronics, which is used in products such as LEDs, lasers, and solar cells.

Meta and Broadcom extend their AI chip plans through 2029

The buildout is not stopping at foundries and memory makers. Meta and Broadcom said on Tuesday that they are extending their partnership on Meta’s custom in-house AI accelerators through 2029.

At the same time, Meta said Broadcom Chief Executive Hock Tan told the company last week that he will not stand for reelection to Meta’s board. Hock joined the board in 2024.

Meta said it has committed to an initial deployment of 1 gigawatt of its Training and Inference Accelerators, and the deal is expected to grow into multiple gigawatts of chips based on Broadcom technology. Broadcom said the MTIA chips will be the first AI silicon built on a 2-nanometer process.

In a statement, Mark Zuckerberg said, “Meta is partnering with Broadcom across chip design, packaging, and networking to build out the massive computing foundation we need to deliver personal superintelligence to billions of people.”

Broadcom shares rose 3% in extended trading after the news, while Meta stock was flat. On Broadcom’s March earnings call, Hock said, “Now, contrary to recent analyst reports, Meta’s custom accelerator, MTIA roadmap is alive and well. We’re shipping now and, in fact, for the next generation XPUs, we will scale to multiple gigawatts in 2027 and beyond.”

Meta unveiled four new versions of its MTIA chips in March. It first introduced the custom silicon in 2023, after similar efforts by Google and Amazon.

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