ASML hits record €11.7 billion sales as AI chip demand surges

ASML reported Q3 2026 earnings, with Q4 gross margin guidance at ~57% due to capacity expansion costs. CEO Christophe Fouquet and CFO Roger Dassen discussed capacity challenges, value-based pricing, and demand validation. China remains ~20% of sales, with strong demand. High-NA EUV adoption is uncertain, and non-current liabilities increased by $5B QoQ, reflecting large order intake.

Global semiconductor stocks fell sharply Thursday, with SK Hynix, Micron, Nvidia, Intel, and AMD among the decliners. European chipmakers like Infineon, ASML, and STMicroelectronics also dropped. The sell-off was driven by U.S. inflation data, which fueled fears of further Fed rate hikes. U.S. consumer prices rose 0.6% in September, with annual inflation at 3.7%.

ASML reported Q3 2026 net sales of €11.662B, up 25% QoQ, and net profit of €4.960B, up 70% QoQ. Demand for lithography equipment extends beyond 2028, with orders booked through 2030. ASML plans capacity expansion but faces supply chain constraints. The company expects Q4 sales of €14.2B-€15.2B and full-year sales of €44B-€45B, with EUV business growth over 45%.

ASML reported record Q3 2026 net sales of EUR11.7B, exceeding guidance, with net income of EUR5B and EPS of EUR12.95. Gross margin was 57.5%, above expectations. The company announced plans to expand capacity and expects strong demand through 2028. Q4 guidance projects net sales of EUR14.2-15.2B and a gross margin of around 57%.

European shares fell on Thursday, following a global tech sell-off triggered by higher-than-expected U.S. inflation data. The Stoxx Europe 600 Index dropped 0.35%, with tech stocks leading the decline. ASML, ASM, and Infineon saw significant losses. The U.S. CPI data drove up Treasury yields, impacting tech valuations. LVMH's weak sales report also contributed to the market downturn. Investors remain cautious due to high borrowing costs and macroeconomic uncertainties.

ASML, a Dutch semiconductor equipment maker, is exploring production capacity expansion beyond a 30% increase planned for 2028 due to strong AI-driven demand. CEO Christophe Fouquet noted that current supply may not meet future demand, prompting the company to consider further capacity extensions. ASML reported Q3 2026 net sales of 11.7 billion euros, up 25% from the previous quarter, and expects full-year 2026 net sales between 44 billion and 45 billion euros.