On its third quarter of 2026 earnings call, held on Oct. 14, 2026, ASML (NASDAQ:ASML) announced record total net sales of €11.7 billion driven by expanding chipmaker investments in artificial intelligence infrastructure. Semiconductor manufacturers are facing prolonged product shortages, making the company’s chip-printing tools indispensable for global technology growth. Three things management said stand out.
1. Chipmakers Are Securing Equipment Capacity Through 2028
Semiconductor manufacturers are contending with supply deficits across advanced memory and processing microchips. Customers are lengthening their purchasing windows to 2030 to guarantee equipment deliveries for long-term factory expansions.
This extended visibility has led them to conclude that demand for their product will outpace supply through at least 2028.
— Christophe D. Fouquet, CEO
2. Production Capacity Expansion Is Accelerating Past Initial Targets
To meet customer demand, management is expanding output targets for extreme ultraviolet (EUV) systems, which use short wavelengths of light to print tiny circuits, and deep ultraviolet (DUV) immersion tools beyond previously planned growth rates.
And with that goal in mind, are now looking into expanding our 2028 capacity even above the 30% year on year growth target that was under investigation last quarter, for both low-NA EUV and immersion systems.
— Roger J. Dassen, CFO
3. Value-Based Pricing Increases Will Boost Future Gross Margins
Management completed negotiations to raise prices on its most critical chipmaking machinery. These higher prices will begin to expand revenue and gross margin, which measures the percentage of revenue remaining after direct output costs, in 2027 and will reach full impact in 2028.
Conversations have been completed and, you know, have indeed led to pricing increases for what we call the most critical products for our customers.
— Roger J. Dassen, CFO
Looking Ahead
Unprecedented buyer demand is stretching delivery timelines, giving the business extraordinary revenue visibility. High technical barriers to entry and non-substitutable machines give the company durable competitive moats. Management is watching factory ramp execution and supply chain readiness closely to prevent bottlenecks.
In closing, the combination of very strong demand fundamentals improved visibility, and rising litho intensity, reinforce our confidence in the trajectory of our business.
— Christophe D. Fouquet, CEO
Expanding factory throughput, the number of silicon wafers a tool processes per hour, remains the key focus for satisfying global semiconductor demand.
Focus continues to be on supporting our customers, as they ramp their logic and memory nodes by continuing to expand our capacity over a multiyear horizon.
— Christophe D. Fouquet, CEO
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This article was created using Large Language Models (LLMs) based on The Motley Fool’s insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML. The Motley Fool has a disclosure policy.
ASML: 3 Key Takeaways for Long-Term Investors was originally published by The Motley Fool