ASML, the Dutch company that makes the machines used to print the world's most advanced computer chips, reported record third-quarter sales of 11.7 billion euros on Wednesday. The company said its planned equipment supply for 2027 and 2028 will not fully meet what customers want, and that some customers are now asking to place orders for delivery as far out as 2029 and 2030.
ASML holds a near-monopoly on the extreme ultraviolet lithography machines needed to manufacture the most advanced chips, the kind used in AI data centers and the newest smartphones and computers. That position has made the company one of the clearest barometers of how durable the current boom in AI-related spending really is, since its order book reflects what chipmakers themselves expect demand to look like years in advance, not just this quarter.
Despite the record results, ASML shares fell nearly 2% on the news, a reminder that investors have grown accustomed to strong numbers from AI-linked companies and are now scrutinizing guidance and margins as closely as headline growth. The report landed at the start of a heavy week for chip-sector earnings, with Taiwan Semiconductor Manufacturing Company, the world's largest contract chipmaker, due to report its own results on Thursday after posting record quarterly revenue of roughly 46.7 billion dollars, up about 51% from a year earlier.
Together, the two reports are being read as a test of whether the AI buildout that has driven chip demand for the past several years still has room to run, or whether spending is starting to plateau even as backlogs stretch out. So far, the order book at ASML suggests chipmakers themselves are planning for years of continued expansion.
Taiwan Semiconductor Manufacturing Company reports third-quarter results on Thursday, and its guidance for the rest of the year will be watched closely for further signs of how strong AI-related chip demand remains.
Why does ASML matter so much to the chip industry?
It holds a near-monopoly on the extreme ultraviolet lithography machines required to make the most advanced computer chips, so its order book reflects demand across the whole industry.
Why did the stock fall on good news?
Investors appear to be focused on margins and future guidance rather than the headline record revenue figure.