ASML not only beat estimates, it also reminded the market who holds the keys to the chip revolution

ASML not only beat estimates, it also reminded the market who holds the keys to the chip revolution 🔑 $ASML 🏭

Headlines focused on ASML's earnings surprise - but those who listened to the investor call heard a much bigger story! 🔎

This is not just another strong quarter, but confirmation that the company continues to strengthen its position as the bottleneck of the global chip industry.

And also - the huge hint from the investor call about Intel's massive success...

Let's start with the results - a clear beat on estimates 📊

Revenue: €9.33 billion - above estimates of approximately €8.85 billion. ✔️

Net income: €2.9 billion, with earnings per share of €7.59, compared to estimates of approximately €6.90. ✔️

Gross margin: 54%, a figure that illustrates the company continues to benefit from exceptional pricing power. ✔️

But, not only is the present good - but also the plans for the future! ⏳

The company raised its revenue guidance for 2026 to a range of €43–45 billion, compared to the previous guidance of €34–39 billion. 📈

This is not just a guidance raise - the astute will understand that this is a statement that demand for advanced chip manufacturing equipment continues to be significantly stronger than initial estimates at the beginning of the year! 🏭

The behind-the-scenes news and the big hint about Intel! 🖥

One of the biggest risks surrounding ASML was whether High-NA EUV machines - which cost over $350 million per unit - would indeed be viable for commercial production. 🏭

In the investor call - the company confirmed that the system transitioned to commercial production at the first customer, Intel. ✔️

The implication is much broader than Intel - from the moment the technology was proven, TSMC and Samsung can no longer afford to wait - whoever wants to lead in 2-nanometer and later 1.4-nanometer chip production will need to accelerate the pace of orders. 📈

But - although this is a significant update for the general market, it is a huge data point for Intel - which is the first to use a device that essentially allows it to achieve unique mass production in the world with a device that enables much larger shipments than the previous one...

The big bet on demand is already beginning:

ASML announced that it is increasing its production target for standard EUV machines by approximately 30% in 2027, and plans a further expansion of approximately 30% in 2028. 📊

This is a direct response to the enormous capital investments of chip manufacturers, foremost among them TSMC. ⛏

The message here is clear: despite macroeconomic noise, demand for advanced chips continues to grow at a pace that requires significant capacity expansion. ⛏

But the much more important conclusion here is - when all the major players rush to order equipment simultaneously - pricing power remains with ASML. 💡

One of the less-headlined figures was the services segment:

This is a highly profitable activity - which provides the company with a stable revenue source even during periods of geopolitical uncertainty. ☢️

If we try to summarize the report in a few words - the market isn't buying machines, it's buying access to the future. 📱

This quarter proved that ASML is no longer just an equipment supplier to the chip industry - it has become the gateway to the world's most advanced manufacturing technologies. 🏭

In the chip market, you can perhaps compete in almost anything - except with the one who holds the keys to the factory. 🔑