ASML Shares Rise 5.0% as AI Stocks Rebound and Terafab Equipment Shipments Accelerate
Key Facts
ASML shares rose about 5.0% between the November 5 close and the November 6 close, reaching 1,424.75 after ending the previous session at 1,356.65, according to EL7 data. The gains came in a session when U.S. AI stocks rebounded after a two-day sell-off, according to the Associated Press. The Nasdaq rose 1.1% and the S&P 500 gained 0.3%, while the Dow Jones fell 0.5%. The move placed the chipmaking equipment manufacturer among sector stocks recovering that day. Elon Musk said in October that ASML and other suppliers had accelerated equipment shipments for the Terafab project.
On SpaceX's third-quarter earnings call, Musk said the company and its suppliers were working to accelerate equipment deliveries to help the project meet its timelines. He described those timelines as "very ambitious," adding: "We are very grateful to ASML and all our other suppliers for accelerating equipment delivery to achieve this outcome." The comment links ASML to the Terafab project from Tesla and SpaceX, but does not specify the value of the shipments or their financial impact on the company. The acceleration concerns the chipmaking equipment the project needs and does not, by itself, measure ASML sales in the November 6 session. The comment comes as investors focus on equipment suppliers' ability to meet demand tied to the expansion of chip manufacturing.
ASML's third-quarter results provide background on the company's performance ahead of the rally. It reported total net sales of 11.662 billion euros and net income of 4.960 billion euros, up from 9.326 billion euros and 2.918 billion euros, respectively, in the second quarter. Gross margin rose to 57.5% from 54.0%, while the company sold 113 new lithography systems, compared with 86 in the previous quarter. ASML said its installed base management sales reached 3.3 billion euros, exceeding its guidance, as strong demand for productivity upgrades continued. It added that these sales helped lift gross margin to 57.5%, above its guidance for the quarter.
The U.S. market session saw broader divergence than the gains in AI stocks. The Associated Press said investors tried to assess what Democratic victories in the midterm elections could mean for the economy, with most S&P 500 stocks remaining lower during the session. The Nasdaq and S&P 500 rebound followed two days of selling in AI stocks, while the Dow Jones did not join the gains. This puts ASML's move in the context of a day that brought a partial return of appetite for AI-related technology stocks, in a market where gains were not broad-based. The index figures alone do not show that the sector's rebound resulted from Terafab news.
ASML raised its 2026 sales outlook to a range of 44 to 45 billion euros, with a gross margin of about 56% expected. For the fourth quarter, the company forecast total net sales of between 14.2 and 15.2 billion euros and a gross margin of about 57%. On demand, it said expected customer demand for its equipment in 2027 and 2028 could exceed the supply it currently plans. It added that it was exploring ways to increase production capacity for 2028 beyond the 30% increase announced earlier. These forecasts put supply and production capacity at the center of attention on the company in the coming periods.