Coin Press - Dutch tech giant ASML posts gain in second-quarter profits

ASML is a critical cog in the global economy and a key bellwether for the tech sector, as the semiconductors crafted with its tools power everything from smartphones to missiles.

Europe's biggest tech firm by market value said net profits came in at 2.9 billion euros, compared with 2.3 billion in the second quarter of last year.

The firm also hiked its sales forecast for the full year, projecting total turnover of between 43 and 45 billion euros, compared to a previous range of 36-40 billion.

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.

The firm recorded total net sales in the second quarter of 9.3 billion euros, compared with 7.7 billion euros in the same three months of last year.

This was better than the firm's expectations of net sales between 8.4 and 9.0 billion euros.

ASML said it expects net sales of between 11 and 12 billion euros for the third quarter of the year, as Fouquet noted "a continuous, very strong demand from our customers."

The company has been caught in the crossfire of a tech spat between the United States and China and has previously warned its Chinese sales would "decline significantly" this year.

Washington is leading efforts to curb high-tech exports to China over fears they could be used to bolster the country's military.

Beijing has reacted furiously to the measures, describing them as "technological terrorism".

Last month, ASML denied reports of US concerns that one of its advanced chipmaking machines was in China, potentially violating the restrictions.

Chief Financial Officer Roger Dassen said ASML expected China to represent around 20 percent of its sales for 2026.

In January, ASML announced a shake-up in its organisation that was expected to result in the loss of around 1,700 jobs in the Netherlands and United States, mainly from leadership roles.

The firm employs roughly 44,000 staff worldwide.

D.Goldberg--CPN