ASML Orders Surge as Chip Demand Signals Ripple Across Semis

Investors focused on whether demand signals across semiconductors were strengthening or narrowing.

ASML (ASML) reported quarterly orders that exceeded expectations and issued higher sales guidance tied to artificial intelligence-related demand. Separately, Texas Instruments (TXN) delivered a stronger-than-expected earnings outlook, adding another data point to how markets are interpreting semiconductor demand trends.

Key Points

• ASML reported record quarterly bookings and raised its 2026 sales outlook.
• Texas Instruments issued guidance above expectations despite a slight earnings miss.
• The updates highlighted improving demand signals across different parts of the chip industry.

Why Did ASML’s Orders Matter So Much?

ASML reported fourth-quarter bookings of 13.2 billion euros, far above prior expectations, marking a record level for new orders. Bookings are closely watched because they reflect future demand for the company’s chipmaking equipment.

The company also said it expects current-quarter sales of 8.2 billion to 8.9 billion euros and full-year 2026 sales between 34 billion and 39 billion euros. The midpoint of that range exceeded prior estimates and represented an improvement from earlier commentary, when growth in 2026 had been uncertain.

How Did AI Demand Shape the Outlook?

ASML said demand tied to artificial intelligence infrastructure continues to support customer spending on advanced manufacturing tools. More than half of the quarter’s bookings were for extreme ultraviolet lithography systems, which are used to make the most advanced chips.

The company also announced a 12-billion-euro share buyback program through the end of 2028 and disclosed plans to reduce its workforce by about 1,700 positions as part of efforts to streamline operations.

What Did Texas Instruments Add to the Picture?

Texas Instruments reported December-quarter earnings of $1.27 per share, slightly below expectations, with revenue of $4.42 billion roughly in line with forecasts. The market reaction focused more on guidance, with the company projecting first-quarter earnings of $1.22 to $1.48 per share, above consensus at the midpoint.

Management said order trends improved through the quarter, pointing to recovering industrial demand and continued strength in data center-related sales. The company noted that data center revenue grew sharply year over year, even as some consumer-related categories remained weaker.

What It Means for Investors

Together, the updates from ASML and Texas Instruments offered insight into how different segments of the semiconductor industry are evolving. Strong equipment orders suggested chipmakers are investing in capacity, while improved guidance from an analog chip supplier pointed to firmer end-market demand.

The contrasting details also underscored that the recovery is uneven. Advanced manufacturing and data center-related demand appeared strong, while other areas, such as personal electronics, showed continued softness.

For investors, the market reaction highlighted how earnings and guidance shape sentiment beyond individual stocks, influencing expectations for the broader semiconductor landscape.

Conclusion

ASML’s record orders and raised outlook, combined with Texas Instruments’ upbeat forecast, reinforced signs of improving demand across parts of the semiconductor sector. The updates helped clarify how AI-driven investment and recovering industrial trends are influencing market behavior.

FAQs

Why were ASML’s bookings closely watched?
ASML’s bookings reflect future demand for its chipmaking equipment and provide insight into how aggressively customers are investing in capacity.

What did ASML say about its 2026 outlook?
ASML said it expects 2026 sales between 34 billion and 39 billion euros, with the midpoint above prior estimates and earlier expectations.

Why did Texas Instruments’ guidance stand out?
Texas Instruments’ first-quarter earnings guidance came in above expectations, even though its recent quarterly earnings slightly missed forecasts.

Do these results point to a broad semiconductor recovery?
The results showed improving demand in some areas, such as AI-related infrastructure and industrial markets, while other segments remained mixed.

This article was created with AI assistance and reviewed by an editor. For details, please refer to our Terms of Use.

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