AI Investment Boom Drives ASML Performance
ASML Holding, the world’s largest supplier of computer chip-making equipment, has reportedly beaten third-quarter order estimates as the global rush toward artificial intelligence continues to drive demand, according to recent financial reports. The company’s net bookings reached 5.40 billion euros ($6.27 billion), surpassing analyst expectations of 5.36 billion euros.
CEO Christophe Fouquet stated that Europe’s most valuable technology firm is experiencing “continued positive momentum around investments in AI,” with the boom benefiting customers across both advanced logic chips for smartphones and AI datacenters, and advanced memory chips required for AI applications. The positive results come amid major deals between AI firms and chipmakers, including OpenAI’s recent plans to develop over $1 trillion in data center capacity.
China Sales Expected to Decline Significantly
Despite the strong overall performance, sources indicate that ASML expects Chinese sales to fall “significantly” in 2026, following years where China accounted for nearly half of company sales in 2024 and approximately one-third so far in 2025. According to the report, CFO Roger Dassen described this anticipated decline as a “normalization” rather than resulting from stockpiling during the U.S.-China trade tensions.
The expected downturn comes as U.S.-led export restrictions prevent ASML from selling its most advanced equipment in China, creating ongoing tensions between the superpowers. Analysts suggest these restrictions have prompted China to tighten controls on rare earth metal exports, though ASML reportedly stated it won’t be immediately affected by these measures.
Market Response and Future Outlook
ASML shares rose 3.2% to 873.80 euros in morning trading following the earnings announcement, extending a 37% surge since early September. The company reported third-quarter net income of 2.12 billion euros, aligning with analyst expectations according to LSEG IBES data.
Looking ahead, the company forecasts that sales will be, at worst, flat in 2026 compared to approximately 32.5 billion euros expected in 2025. JPMorgan analysts reportedly commented that “the bearish view of a worse than expected 2026 will be put to rest and the market will focus on the extent the company can grow in 2027.”
Industry Position and Customer Base
ASML’s lithography systems, essential for creating chip circuitry, are reportedly sold to major semiconductor manufacturers worldwide. Key customers include Taiwan’s TSMC, which produces most AI chips for Nvidia, along with other logic chip firms such as China’s SMIC and Intel. The company also serves leading memory chip manufacturers including Samsung, SK Hynix and Micron.
The sustained demand for advanced chip-making equipment comes amid broader industry developments, including renewable energy infrastructure expansion and major corporate investments in manufacturing capabilities. Meanwhile, government policy changes and technology sector valuations continue to shape the global economic landscape alongside consumer technology innovations.
This coverage is based on reporting from Reuters news agency and reflects information available as of October 15.
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