Dutch firm says it expects strong growth in 2026, countering fears of an investment bubble.
Tech giant ASML has reported a quarterly record in orders of its chip-making equipment, boosting hopes for the sustainability of the artificial intelligence boom and countering fears of an investment bubble.
The Dutch firm said on Wednesday that it booked orders worth 13.2 billion euros ($15.8bn) in the final quarter of 2025, more than half of which were for its most advanced extreme ultraviolet (EUV) lithography machines.
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ASML logged orders worth 7 million euros during the same period the previous year.
Net sales came to 9.7 billion euros in the October-December period, ASML said, taking sales for all of 2025 to 32.7 billion euros.
Net profit for the year was 9.6 billion euros, up from 7.6 billion euros in 2024.
The Veldhoven-based company forecast net sales of between 34 billion euros and 39 billion euros in 2026.
ASML Chief Executive Officer Christophe Fouquet said the company’s chip-making customers had conveyed a “notably more positive assessment” of the market situation in the medium term based on expectations of strong AI-related demand.
“This is reflected in a marked step-up in their medium-term capacity plans and in our record order intake,” Fouquet said in a statement.
“Therefore, we expect 2026 to be another growth year for ASML’s business, largely driven by a significant increase in EUV sales and growth in our installed base business sales.”
Fouquet also said the company would cut about 1,700 jobs, most of them at the leadership level, amid concerns work processes had become “less agile”.
“Engineers in particular have expressed their desire to focus their time on engineering, without being hampered by slow process flows, and restore the fast-moving culture that has made us so successful,” Fouquet said.
The proposed cuts, which would affect positions in the Netherlands and the United States, represent about 4 percent of ASML’s 44,000-strong global workforce.
ASML holds an effective monopoly on the production of machinery used by TSMC, Samsung Electronics, and Intel to make the most advanced AI chips.
The company sells only about 50 of its extreme ultraviolet (EUV) lithography machines each year, with each unit costing about 250 million euros.
ASML’s share price surged on Wednesday, with its stock up nearly 6 percent as of 9.30am local time.
“ASML’s latest results suggest the AI boom is still in full swing, with strong orders and a bullish outlook,” said Russ Mould, investment director at AJ Bell.
“However, job cuts in the business would suggest it is not getting carried away with the strength of current trading.”
ASML’s restructuring “looks like a sharper focus on efficiencies and different ways of working, rather than saying there isn’t enough work for existing staff to do,” Mould added.
“Nonetheless, it’s a sign that the AI craze might be trying to catch its breath.”
Tech giants such as Meta, OpenAI, Nvidia and Oracle have poured billions of dollars into AI in the expectation that the technology will deliver dramatic changes to how people work and live.
Global AI-related spending is forecast to hit $2.53 trillion in 2026 and $3.33 trillion in 2027, according to projections by technology insights firm Gartner.
The investment boom has propelled the US stock market to record highs, stoking concerns about the sustainability of huge spending on a technology whose promise remains largely unrealised.
