Driven by surging artificial intelligence demand, ASML (ASML.US) delivered stronger-than-expected second-quarter orders. The Dutch semiconductor equipment giant reported €5.5 billion ($6.4 billion) in new bookings, significantly outpacing analysts' €4.8 billion consensus estimate. Despite this robust performance, CEO Christophe Fouquet maintained a cautious stance on 2026 prospects, citing persistent macroeconomic volatility and geopolitical uncertainty.

As the exclusive producer of extreme ultraviolet (EUV) lithography machines essential for manufacturing advanced AI chips, ASML holds a pivotal position in powering global AI infrastructure. Its technology enables production of Nvidia's (NVDA.US) high-performance processors and serves key clients like TSMC (TSM.US) and Intel (INTC.US). Recent trade thaw signals between Washington and Beijing could benefit ASML, following Nvidia and AMD's (AMD.US) partial resumption of chip exports to China.

China ranked as ASML's second-largest market in Q1, though US-led export controls continue blocking sales of cutting-edge EUV systems. Last year, the Netherlands further restricted shipments of immersion deep ultraviolet (DUV) equipment. For Q3, ASML projects net sales between €7.4 billion and €7.9 billion, maintaining full-year revenue growth guidance at approximately 15%.

Supply chain constraints remain challenging. Intel recently delayed European factory construction for cost reduction, while Samsung posted its first profit contraction since 2023 amid declining AI chip market share—though analysts anticipate nearing an earnings trough.

ASML shares traded near $800 in after-hours sessions, still down roughly 25% from 2023 highs. The equipment leader continues navigating short-term market turbulence while leveraging its technological edge to find strategic pivot points amid the AI revolution and shifting geopolitical currents.