Strong demand for AI systems pushed up sales forecasts and drove a gain in second-quarter profits Wednesday at Dutch tech giant ASML, which manufactures chip-making machines to power the tech industry.
ASML is a critical cog in the global economy and a key bellwether for the tech sector, as everything from smartphones to missiles rely on the semiconductors crafted with its tools.
Investors were watching the results especially closely after several sharp sell-offs in the tech sector over fears the AI bubble might be approaching its bursting point.
But the firm's Chief Executive Officer Christophe Fouquet said AI was still pushing his business forward.
"Ongoing AI-related investments and continued progress in AI technologies are driving demand for advanced Logic and Memory chips, further strengthening the semiconductor industry's growth outlook," said Fouquet in a statement.
"Our order intake remained extremely strong in the first half of the year," added the CEO.
The firm, Europe's biggest by market capitalisation, said it now expected to make between 43 and 45 billion euros ($49-51 billion) in total net sales this year.
This was an increase from the range of 36-40 billion that ASML had previously forecast and was due to "a continuous, very strong demand from our customers," said Fouquet.
Net profits were also better than expected for the second quarter, coming in at 2.9 billion euros compared to the 2.3 billion euros the firm made in the same period last year.
"All in all, I would say a very strong quarter. Both from a market dynamic perspective and from an execution perspective," said Chief Financial Officer Roger Dassen.
