Dutch chip equipment maker ASML saw its shares jump 7 percent after reporting record orders and stronger than expected guidance, supported by the ongoing global boom in artificial intelligence. The results signal growing confidence among chipmakers as they expand capacity to meet rising AI driven demand.
ASML reported bookings of 13.2 billion euros in the fourth quarter of 2025, more than double market expectations. This marked the highest quarterly order intake in the company’s history, showing that customers are accelerating investments in advanced chip manufacturing tools. Alongside this, ASML announced a 12 billion euro share buyback program to be completed by the end of 2028, reflecting confidence in its long term growth.
Looking ahead, ASML expects sales in the current quarter to range between 8.2 billion and 8.9 billion euros. For 2026, the company forecasts total sales of 34 billion to 39 billion euros, with the midpoint exceeding analyst estimates. This outlook suggests revenue growth of up to 19 percent compared to 2025, an improvement from earlier guidance when growth prospects were uncertain.
The company’s performance is closely tied to the expansion of AI infrastructure. Global chipmakers are increasing spending to produce more advanced processors, especially as demand rises for data centers, AI models, and high performance computing. Customers such as TSMC, the world’s largest chip manufacturer, continue to report strong profits, reinforcing expectations that AI demand will remain steady in the medium term.
ASML also highlighted growing demand for its most advanced extreme ultraviolet lithography machines, which are essential for producing cutting edge chips. Revenue from these systems is expected to rise significantly in 2026 as customers invest in next generation semiconductor manufacturing.
At the same time, ASML announced plans to reduce its workforce by around 1,700 positions, mainly in the Netherlands, with some roles affected in the United States. The company said the move is aimed at improving agility and streamlining how teams operate, even as overall business momentum remains strong.
China remains an important but changing market for ASML. Due to export restrictions, the company cannot ship its most advanced tools to the region. ASML expects China to contribute about 20 percent of total sales in 2026, down from over 30 percent in recent years.
For the automation and manufacturing ecosystem, ASML’s results underline a clear trend. AI is no longer a short term boost but a key driver shaping investment decisions, capacity expansion, and technology roadmaps across the global semiconductor industry.
