ASML Stock Surges After Blowout Q2 Earnings on AI Chip Demand

ASML Holding reported exceptional Q2 2026 results on July 15, with revenue of €9.3 billion and net income of €2.92 billion, significantly beating analyst expectations of €8.8 billion and €2.62 billion respectively. The Dutch semiconductor equipment giant raised its full-year revenue guidance to €43-45 billion, up from the initial €34-39 billion range, representing a 35% year-over-year increase. Gross margin guidance was also raised by three percentage points to 55%. The company attributes its strong performance to booming demand for advanced chipmaking equipment driven by AI infrastructure spending across data centers, smartphones, and PCs. ASML plans to increase supply of advanced equipment by 30% over the next three years, with memory-related revenue expected to grow 75% this year. Major memory manufacturers SK Hynix and Samsung are planning over $2 trillion in capital expenditure over the next decade. ASML stock has already risen nearly 50% in 2026, with analysts setting a 12-month median price target of $2,393, suggesting further 38% upside potential.