Chip giant ASML posts record orders and upbeat 2026 guidance as AI boom continues

ASML, the renowned Dutch semiconductor manufacturer, has reported a staggering surge in orders, significantly exceeding market predictions. In the fourth quarter of 2025, the company recorded bookings amounting to €13.2 billion (approximately $15.8 billion), far surpassing analyst forecasts of €6.32 billion, according to data from Visible Alpha, as referenced by Reuters. This remarkable achievement marks a record quarter for ASML, as noted by its finance chief. Looking ahead, ASML has provided an optimistic sales forecast for the upcoming quarter, estimating net sales between €8.2 billion and €8.9 billion. For the full year of 2026, the company anticipates total sales to range from €34 billion to €39 billion, surpassing the mid-point estimate of €35.1 billion from analysts. Notably, ASML has previously indicated that it does not foresee 2026 sales falling below those of 2025, suggesting a positive growth trajectory. The company's impressive performance is largely attributed to the burgeoning demand for AI infrastructure, which has resulted in shares skyrocketing nearly 30% this year. Supporting this narrative, Taiwan Semiconductor Manufacturing Co. (TSMC), ASML's major client and the world's leading chipmaker, recently reported record profits for the fourth quarter, reinforcing the expectation of sustained demand for AI chips and infrastructure. Adding to the complexity of the market, there is currently a shortage of memory semiconductors, leading to unprecedented price hikes. Industry experts predict that this crunch may extend into 2027. Analysts forecast that major memory manufacturers, including Samsung and SK Hynix, will ramp up production capabilities in the next year or two, translating to increased purchases of ASML's advanced machinery. For instance, Barclays recently projected that SK Hynix would acquire 12 of ASML's extreme ultraviolet lithography systems in 2026. Investors are closely monitoring any updates regarding ASML's operations in China, where the firm faces export restrictions that prevent the shipment of its most advanced machines. ASML has indicated that it expects a significant decline in sales in China for 2026 compared to the preceding years of 2024 and 2025. This evolving situation presents both challenges and opportunities as the semiconductor landscape continues to shift dramatically.