ASML posts record Q2 earnings as AI‑driven chip demand fuels EUV sales surge

ASML reported Q2 2026 net sales of €9.3 billion and net income of €2.9 billion, beating its own guidance. The company sold 86 lithography systems, including 16 of its most advanced extreme‑ultraviolet (EUV) machines, and EUV tools accounted for 57 % of net system revenue. Gross margin reached 54 % and the firm raised its full‑year 2026 revenue outlook to €43‑45 billion with a 54‑56 % margin target. Morgan Stanley upgraded its price target to €1,930 and reaffirmed an “overweight” rating, calling ASML a Top Pick. The firm generated €1.3 billion of free cash flow, repurchased €1.1 billion of shares and its stock has risen roughly 70 % year‑to‑date. Analysts attribute the strong performance to accelerating AI‑infrastructure spending, which is driving chipmakers to expand capacity at 5 nm and below. Parallel industry news shows major semiconductor players committing multi‑billion‑dollar investments: Intel is adding €5 billion in Ireland, TSMC plans an additional $100 billion in U.S. fabs, Samsung is advancing its Yongin fab timeline, and other firms are expanding advanced packaging and silicon‑photonics capacity worldwide.