Driven by demand for artificial intelligence chips, ASML's second-quarter results exceeded expectations and the company raised its performance guidance again
ASML, the world's largest supplier of computer chip manufacturing equipment, reported second-quarter revenue and profit data on Wednesday that beat expectations, boosted by demand from artificial intelligence chipmakers. Revenue for the three months ended June 30 was 9.33 billion euros ($10.90 billion), compared with 8.80 billion analysts' forecast, according to the LSEG median forecast. According to LSEG data, net profit was 2.92 billion euros, higher than the expected 2.62 billion euros. "Our customers continue to accelerate capacity expansion plans, which enables ASML to more clearly foresee long-term demand," Chief Executive Christophe Fouquet said in a statement. The Dutch company is the sole manufacturer of extreme ultraviolet lithography (EUV), which is necessary to create cutting-edge chips. include , Samsung, SK Hynix and Customers including Huawei are racing to expand production to meet artificial intelligence-related needs. In addition, the CEO of ASML announced that ASML's new high numerical aperture (High-NA) equipment will be used to produce some of its most advanced "Panther Lake" chips, marking the first time the technology has been put into practical use. ASML raised its annual forecast for the second time this year, a sign that companies are rushing to snap up its semiconductor manufacturing equipment as the race to build artificial intelligence infrastructure turns chips into a hot commodity. The Dutch supply group said on Wednesday it expected annual sales of between 43 billion and 45 billion euros ($49.11 billion to $51.39 billion), compared with a previous forecast of 36 billion to 40 billion euros. At the same time, its gross profit margin - a core measure of pricing power and profitability - is expected to improve to 54% to 56% from the previous range of 51% to 53%. "Continued investments related to artificial intelligence and continued advances in AI technology are driving demand for advanced logic chips and memory chips, further strengthening the growth prospects of the semiconductor industry," the company's CEO said.