(Bloomberg) -- ASML Holding NV lifted its annual sales forecast for the second time this year as a surge in artificial intelligence spending drives demand for the Dutch company's chip-making machines.
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Europe's most valuable company forecast net sales to grow to between €43 billion ($49.2 billion) and €45 billion this year in a statement on Wednesday. In April, ASML had forecast annual sales of €36 billion to €40 billion.
ASML is a linchpin in the semiconductor supply chain. It's the only maker of sophisticated lithography machines that are crucial for manufacturing advanced semiconductors, including Nvidia Corp. chips that are the backbone for training and running AI models in data centers. As technology companies including Microsoft Corp. and Alphabet Inc. lead the charge, channeling hundreds of billions into securing the infrastructure for advanced AI skills, chipmakers are rushing to add manufacturing capacity.
ASML's shares have surged 69% this year on anticipation that this demand will filter down to the Veldhoven, Netherland-based company's gear, and investors are watching for signs that the booming investments in AI and the infrastructure that surrounds it will continue. Taiwan Semiconductor Manufacturing Co., the biggest producer of advanced logic chips and a key ASML customer, reported a 36% increase in quarter sales this week.
Part of Chief Executive Officer Christophe Fouquet's challenge is keeping up with demand for the intricate machines. The company previously said it is targeting an output of at least 60 units of its second-most advanced tool, known as the low NA EUV, this year. It projected a capacity of at least 80 low NA EUV tools in 2027. ASML is also expanding its footprint with construction of a campus in Eindhoven set to begin this quarter. The facility ultimately targets a capacity of 20,000 employees.
Trillionaire Elon Musk is touting plans to manufacture cutting-edge chips to serve his robotics, artificial intelligence and space data center ambitions. ASML, which also counts Samsung Electronics Co. and Intel Corp. among customers, said last month it will collaborate on Musk's so-called Terafab project.