the prior quarter. Chip demand isn't just holding up - it's speeding up. ASML, the Dutch company that makes the machines used to build the world's most advanced chips, beat Q1 estimates on both revenue and profit before raising its full-year outlook. The company now expects 2026 sales between 36 billion and 40 billion euros, up from a prior range of 34 billion to 39 billion euros.
CEO Christophe Fouquet said "demand for chips is outpacing supply," with customers speeding up plans to build more chip-making capacity through 2026 and beyond.
Memory chips were the biggest story this quarter, making up 51% of new tool sales - nearly double the 30% from last quarter. That shift shows AI's appetite for memory is growing even faster than its appetite for processing power.
ASML sized its guidance range to account for "potential outcomes of ongoing discussions around export controls" - referring to possible new limits on what it can sell to China. The company is already blocked from shipping its most advanced machines there, and further limits could cap growth.
Why ASML matters beyond ASML: when this company raises its forecast, it means the biggest chipmakers in the world - TSMC, Samsung, Intel - are ordering more equipment. That's a real-time signal that AI spending is still picking up speed.
