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ASML reported second-quarter net sales of โ‚ฌ9.3 billion on Wednesday, beating expectations, as the company raised its full-year revenue forecast for the second time this year on sustained demand for advanced AI chips.

ASML's updated outlook calls for 2026 net sales of โ‚ฌ43 billion to โ‚ฌ45 billion alongside a gross margin of 54% to 56%, a significant step up from the previous guidance of โ‚ฌ36 billion to โ‚ฌ40 billion in net sales and a gross margin of 51% to 53%, the company said.

Second-quarter net profit came in at โ‚ฌ2.9 billion, up from โ‚ฌ2.3 billion a year earlier. Analysts had expected net sales of โ‚ฌ8.8 billion and net profit of โ‚ฌ2.6 billion for the quarter, according to CNBC.

"Ongoing AI-related investments and continued progress in AI technologies are driving demand for advanced Logic and Memory chips, further strengthening the semiconductor industry's growth outlook," ASML President and Chief Executive Officer Christophe Fouquet said in a statement. "Our customers, in turn, continue to accelerate their capacity expansion plans."

ASML said order intake was strong enough in the first half of the year that the company plans to increase its 2026 low NA EUV capacity of around 65 units by 30% for 2027, and is evaluating a further 30% increase for 2028. The company also plans to add 30% to its 2026 deep ultraviolet immersion capacity of around 130 units for 2027, with another potential 30% increase for 2028 under consideration, the company said.

Fouquet said the company was close to receiving all orders for its extreme ultraviolet lithography systems needed for next year, according to The Wall Street Journal. He also said memory revenue should grow 75% this year.

ASML shares surged more than 7% when markets opened but gave back much of that advance, finishing the session up around 3%.

ASML holds a unique position in the global chip supply chain as the sole maker of extreme ultraviolet lithography machines, which chipmakers depend on to manufacture their most cutting-edge semiconductors. Lithography systems represent one of the largest single costs inside any advanced semiconductor facility, with ASML holding a near-monopoly on the equipment that chipmakers cannot build without.

China is still projected to represent about 20% of ASML's total net sales this year, the company said, while South Korea emerged as the top revenue-generating market in the second quarter at 43% of sales. Investors will get a fuller picture of where the company is headed when ASML holds a Capital Markets Day on June 10, 2027.