ASML raised its full-year sales forecast for the second time this year, expecting revenues of 43-45 billion euros due to strong AI chip demand. The company is also planning to increase its production capacity for EUV and DUV technologies, reflecting ongoing commitments from customers.
ASML announced on Wednesday that it has raised its sales guidance for 2023 to between 43 billion euros and 45 billion euros. This adjustment is driven by continued strong demand for AI chips, prompting the company to revise its previous forecast of 36-40 billion euros. Gross margin expectations have also increased, now projected between 54% and 56%.
For the second quarter, ASML reported net sales of 9.3 billion euros, which exceeded the LSEG consensus estimate of 8.8 billion euros. Net profit for the quarter was 2.9 billion euros, again surpassing expectations of 2.6 billion euros, indicating robust financial health amidst growing market demands.
CEO Christophe Fouquet emphasized that order intake has remained 'extremely strong' in the first half of the year. ASML plans to increase its production capacity by 30% for both low NA EUV and Deep Ultraviolet (DUV) immersion technologies by 2026, aligning with chipmakers' expansion efforts spurred by the AI demand.
Despite the positive outlook, semiconductor stocks are under scrutiny as investors question sustainability in AI-driven capital expenditures. Furthermore, ASML is navigating tighter export controls concerning its advanced chip-making equipment, which could impact future sales.
Taiwan Semiconductor Manufacturing Co. (TSMC), a major ASML customer, reported a 68% increase in sales in June, attributing it to strong demand for its chips. TSMC also plans to develop additional advanced chip packaging plants, which underscores the industry's commitment to growing production capabilities.
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ASML raised its full-year sales forecast for the second time this year, expecting revenues of 43-45 billion euros due to strong AI chip demand. The company is also planning to increase its production capacity for EUV and DUV technologies, reflecting ongoing commitments from customers.