ASM International said it expected sales next year to grow more than previously thought as the race to build artificial-intelligence infrastructure and new devices coming to market fuel demand for chips and the tools needed to make them.

The Dutch group, which supplies chip makers with wafer processing equipment for the deposition of thin films, in September set a 2027 revenue target between 3.7 billion and 4.6 billion euros, equivalent to $4.21 billion to $5.23 billion. It said Tuesday that it expected revenue next year to exceed the top end of that range.

The company cited strong orders in the first half, expectations for continued robust bookings in the second half, and visibility from customers as they seek to expand capacity to produce more chips so they can satisfy demand from their own customers.

Some of the world's largest tech groups are pledging hundreds of billions of dollars to build out data centers, driving demand for the chips and tools companies need to produce more of them.

Earlier this month, ASM International's larger rival, ASML Holding, lifted its annual sales guidance for the second time and said it planned to boost output of its machines in 2027 and 2028 in a sign of how the AI race has turned chips into a hot commodity.

"The demand environment remained highly favorable in the second quarter, driven by sustained investment in AI infrastructure to support rapidly expanding compute workloads. This momentum continued to fuel the expansion of advanced semiconductor manufacturing capacity globally," ASM International Chief Executive Officer Hichem M'Saad said.

The company has emerged as one of many beneficiaries of growing AI spending, riding a wave of investor fervor that pushed global semiconductor stocks to new highs this year. Its shares are up 46% since January, despite bouts of volatility that weighed on the sector in recent weeks as some investors worry that valuations and AI spending might be too high.

M'Saad said logic and foundry customers--those seeking to produce the integrated circuits that power smartphones, computers and other electronic devices--had fueled growth in the second quarter.

"Next-generation devices increasingly incorporate new architectures and performance-enhancing layers. As a materials-discovery company, we are well positioned to benefit from these technology transitions," he said.

M'Saad said sales related to memory chips showed a solid increase. Demand for memory chips has grown so much that companies can't get enough of them. Executives at Micron Technology, a key memory chip maker, said last month that tight conditions would persist beyond 2027.

ASM International posted second-quarter sales of 1 billion euros, up 24% on year at constant currency and above analysts' forecasts of 995.7 million euros, according to Visible Alpha.

For the current quarter, the company expects sales of about 1.10 billion euros against a Visible Alpha forecast of 1.04 billion euros. In the second half, revenue is expected to increase by more than 20% at constant currency compared with the first half.

The company posted a second-quarter net profit of 285.4 million euros compared with 202.4 million euros a year earlier. Gross profit--a closely watched metric of pricing power and profitability--came in at 521.1 million euros, generating a 51.9% margin.