ASML $ASML ( ▼ 2.2% ) shares moved higher after the chip equipment giant topped revenue expectations and delivered upbeat sales guidance, even as margins came in slightly softer than hoped. Investors focused on booming demand for its extreme ultraviolet lithography machines, a key bottleneck in advanced chip production.
Top line shines, margins take a small hit
For the fourth quarter, ASML reported net sales of €9.72 billion, ahead of analyst estimates. Adjusted earnings per share came in a bit below forecasts, and margins were modestly softer than the Street expected.
Looking ahead, management projected full-year 2026 sales between €34 billion and €39 billion, a range that sits comfortably above consensus at the midpoint. Gross margin guidance was a touch lighter than estimates, but not enough to overshadow the stronger revenue outlook.
Orders signal AI demand is alive and well
The most eye-catching figure was bookings. ASML logged €13.2 billion in new orders in the quarter, nearly double what analysts had penciled in. That surge underscores how chipmakers are still racing to expand capacity to meet demand from AI, data centers, and advanced computing.
Even first-quarter guidance came in strong, with projected sales above Wall Street expectations. That suggests the momentum is not just a one-quarter story.
AI capex keeps the machines humming
ASML sits at a critical choke point in the semiconductor supply chain. Its EUV tools are essential for producing the most advanced chips, making the company a direct beneficiary of rising capital spending by chip manufacturers supplying hyperscalers and AI firms.
After earlier concerns that growth could slow, the latest results and order trends suggest the AI-driven investment cycle still has legs. For now, ASML $ASML ( ▼ 2.2% ) remains one of the clearest ways to play long-term semiconductor equipment demand.