ASML Holding (NASDAQ: ASML) saw its U.S.-listed shares rise 0.3% to $1,820.63 in midday trading Thursday, bucking a broader sell-off in the semiconductor sector. The Philadelphia Semiconductor Index fell 3.8%, pressured by declines in major chip stocks including Nvidia (NASDAQ: NVDA), which slid 2.9%, and Taiwan Semiconductor Manufacturing Co. (NYSE: TSM), which dropped 2.2%.
The positive move for ASML came after the company released its second-quarter results and raised its full-year 2026 sales guidance to a range of €43 billion to €45 billion, up from previous expectations. The midpoint of €44 billion implies that fourth-quarter revenue will need to come in around €14.4 billion to hit the target, based on first-half results of €18.093 billion and the Q3 guidance midpoint of €11.5 billion.
ASML posted second-quarter sales of €9.326 billion and net income of €2.918 billion, both beating analyst forecasts. The company also raised its gross margin guidance for 2026 to a range of 54% to 56%, up from prior estimates. The implied Q4 revenue of €14.4 billion would mark a 25% sequential increase from the Q3 midpoint and a 48% jump over the record fourth quarter of 2025.
The strong outlook is underpinned by robust demand for ASML's extreme ultraviolet (EUV) lithography machines, which are essential for manufacturing advanced semiconductors. Chief Executive Officer Christophe Fouquet noted that first-half orders remained "extremely strong." The company is targeting a 30% increase in production of low-NA EUV systems in 2027, from a base of roughly 65 units, and a similar boost in deep ultraviolet (DUV) immersion capacity, now close to 130 units.
Chief Financial Officer Roger Dassen highlighted the company's pricing power, stating that EUV tool slots are mostly booked solid through 2027. This pricing strength, combined with a favorable sales mix, is supporting the revenue ramp. Memory end-use sales for the first half hit €6.4 billion, about 76% of that segment's 2025 total, while logic sales reached 40% of the 2025 figure, pointing to a broader equipment upturn.
External capital expenditure plans are also pointing upward. TSMC raised its 2026 capital spending guidance to a range of $60 billion to $64 billion, with CEO C.C. Wei expressing "very high" conviction in the AI cycle. This bodes well for ASML, as TSMC is a key customer for its lithography equipment.
Despite the positive earnings and guidance, ASML's stock barely moved, suggesting investors remain cautious. Analyst Michael Roeg described the results as "blow-out results across the board," but the muted price action indicates that the market may be pricing in some of the optimism already. Risks remain, including shipment schedules, supply chain constraints, and potential changes in export regulations affecting sales to China, which the company expects to account for about 20% of 2026 revenue.
Other chip stocks also declined Thursday. Applied Materials (NASDAQ: AMAT) fell 1.3%, while Nvidia slid 2.9%. ASML was one of the few names in the group to stay positive, reflecting the company's unique position as the sole supplier of EUV lithography machines.
