New York, Jan 28, 2026, 04:54 (ET) — Premarket
- ASML shares climbed roughly 3% in premarket trading following a surge in quarterly bookings that more than doubled
- Chip equipment maker raised its sales forecast for 2026 and announced a fresh buyback program
- The company also announced plans to eliminate roughly 1,700 positions
ASML Holding’s U.S.-listed shares jumped 2.9% to $1,454.59 in early trading Wednesday, following the Dutch chip equipment maker’s report of fourth-quarter bookings hitting 13.2 billion euros ($15.8 billion). The company also raised its sales forecast for 2026 and announced plans to cut about 1,700 jobs. Mizuho analyst Kevin Wang attributed the strong orders and outlook to “AI demand for EUV in both logic and DRAM,” a memory chip type. (Reuters)
Why traders care: ASML controls a critical bottleneck in advanced chipmaking, holding an almost exclusive grip on extreme ultraviolet (EUV) lithography—the machines that etch the tiniest chip details. IMEC CEO Luc Van den Hove highlighted EUV’s “patterning precision, scalability and energy efficiency” as essential for cutting-edge chip production. Reuters reported ASML delivered 44 EUV systems last year. (Reuters)
The surge in bookings offers a preliminary glimpse into next year’s capital spending, as investors debate whether the AI data-centre buildout is driving a wider upcycle that includes both logic and memory chipmakers. ASML’s order fluctuations often ripple through the broader chip equipment sector, and the market prices them accordingly.
ASML reported fourth-quarter net sales of 9.7 billion euros and net income of 2.8 billion euros. It projected first-quarter 2026 sales between 8.2 billion and 8.9 billion euros. The company raised its 2026 net sales forecast to 34 billion–39 billion euros, expecting gross margins of 51% to 53%. ASML also announced a 2025 dividend of 7.50 euros per share, along with a new share buyback program capped at 12 billion euros through December 31, 2028. CEO Christophe Fouquet said, “We expect 2026 to be another growth year for ASML’s business.” (ASML)
Still, the optimistic scenario faces hurdles from policy and the economic cycle. Dutch export controls cap shipments of certain machines, aiming to curb China’s access to cutting-edge chipmaking tech. Demand could also sour quickly if customers cut back after an initial surge in AI-driven spending. (AP News)
Chip equipment stocks gained in U.S. premarket action. Applied Materials jumped 4.1%, Lam Research surged 7.0%, and KLA climbed 4.8%, following the positive signals from ASML’s order report.
Investors are keen to see how much of the order intake translates into immediate shipments versus getting pushed into a longer backlog. They’ll also be tracking if the boost in EUV demand actually lifts margins as the company scales up more complex systems. The recent job cuts complicate matters further: while tighter cost control might help, the risk of execution slips grows when a company reshapes its workforce amid efforts to deliver record numbers of tools.
ASML will host a press conference at 11:00 CET on Wednesday, with an investor call set for 15:00 CET (09:00 ET). Market watchers will be zeroing in on the 2026 demand outlook, the timing of EUV shipments, and how soon restructuring expenses hit operating costs. (ASML)
