AI demand ignites capital expenditure of chip manufacturers! ASML Holding NV ADR (ASML.US) Q4 record order amount far exceeds expectations, raising 2026 sales guidance

Thanks to chip manufacturers increasing capital expenditures to expand chip capacity related to artificial intelligence (AI), demand for cutting-edge chip manufacturing equipment from ASML Holding NV ADR (ASML.US) has far exceeded market expectations for the fourth quarter of 2025. Data shows that ASML Holding NV ADR's fourth-quarter orders reached a record high of 13.2 billion euros, far surpassing the analyst average expectation of 6.85 billion euros. The company pointed out that orders for extreme ultraviolet lithography (EUV) machines in the fourth quarter reached 7.4 billion euros, accounting for more than half of total orders. At the same time, the financial report shows that ASML Holding NV ADR's fourth-quarter revenue was 9.718 billion euros, a 29% increase year-on-year. Gross profit was 5.068 billion euros, a 31% increase year-on-year; gross margin was 52.2%, compared to 51.6% in the same period last year. Net profit was 2.84 billion euros, a 34% increase year-on-year. Earnings per share were 7.35 euros, compared to 5.49 euros in the same period last year. Full-year revenue for 2025 was 32.667 billion euros, a 16% increase year-on-year. Gross profit was 17.258 billion euros, a 19% increase year-on-year; gross margin was 52.8%, compared to 51.3% the previous year. Net profit was 9.609 billion euros, a 27% increase year-on-year. Earnings per share were 24.73 euros, compared to 19.25 euros the previous year. ASML Holding NV ADR also raised its 2026 performance guidance. The company currently expects full-year revenue for 2026 to be between 34 to 39 billion euros, with the mid-point of the forecast range higher than the analyst average expectation of 35 billion euros. The company had previously predicted that 2026 revenue would be flat compared to 2025. The company also expects first-quarter revenue for 2026 to be between 8.2 to 8.9 billion euros. Additionally, ASML Holding NV ADR announced a new share buyback program with a value of up to 12 billion euros, to be completed by December 31, 2028. The company also stated that it would strengthen investment in engineering and innovation through streamlining its technology and information technology departments, implying the possibility of future layoffs. ASML Holding NV ADR is the only manufacturer of cutting-edge lithography machines necessary for producing advanced process chips globally, with customers including all leading chip manufacturers such as Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US), Samsung, and Intel Corporation (INTC.US). These chip manufacturers have increased their investment plans due to the surging demand for AI and storage chips from cloud computing giants like Microsoft Corporation, Amazon.com, Inc., and Alphabet Inc. Class C. Despite concerns about overinvestment, the AI boom continues to drive ASML Holding NV ADR's market value above the 500 billion US dollar mark this month. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR announced this month that it expects capital expenditures for 2026 to greatly increase from 40.9 billion US dollars in 2025 to 52 to 56 billion US dollars, with a large portion allocated to advanced manufacturing technology. Last week, NVIDIA Corporation CEO Jensen Huang called the race to build data centers that can support AI models "the largest infrastructure investment in human history." Huang also stated that billions of dollars in additional investment will be needed in the coming years. Furthermore, as storage chip manufacturers expand their capacity, chip manufacturing equipment providers like ASML Holding NV ADR will also benefit. ASML Holding NV ADR CEO Christophe Fouquet said, "In recent months, many of our customers have become significantly more positive about the mid-term market outlook, primarily based on stronger expectations for the sustainability of AI-related demand. This is reflected in the significant increase in their mid-term capacity plans and our record order intake." He added, "We expect 2026 to be another year of growth for ASML Holding NV ADR's business." The order volume for ASML Holding NV ADR is one of the key indicators of chip manufacturers' confidence in future AI demand. However, ASML Holding NV ADR stated that it will no longer disclose order data in future quarterly reports, as the company believes this metric does not accurately reflect business momentum.