July 28, 2026, (Inside AI) — Dutch chipmaking equipment supplier ASM International projected third-quarter revenue of roughly 1.1 billion euros ($1.25 billion) at constant currencies, handily beating the 994.5 million euros analysts had expected. The forecast, issued Tuesday, signals that the AI infrastructure buildout continues to fuel orders for its deposition tools despite persistent softness in automotive and memory chip markets.
The guidance landed alongside second-quarter revenue of 1 billion euros, topping the consensus estimate of 977.7 million euros. CEO Hichem M'Saad tied the outperformance directly to hyperscale AI spending.
"The demand environment remained highly favorable in the second quarter, driven by sustained investment in AI infrastructure to support rapidly expanding compute workloads," Hichem M'Saad, CEO, ASM International said in a statement.
The numbers underscore a widening divergence inside the semiconductor equipment sector. While logic and foundry customers keep ordering leading-edge tools for AI accelerators and high-bandwidth memory packaging, legacy nodes tied to automotive and industrial applications are still working through inventory gluts. ASM's ability to raise its full-year outlook last quarter and now top third-quarter views suggests the AI tailwind is more than compensating for those pockets of weakness.
ASM's core competency is atomic-layer deposition (ALD), a technique essential for building the ultra-thin films inside advanced logic and memory chips. As transistor structures shrink below 3 nanometers and chipmakers stack more layers in 3D NAND, ALD steps per wafer keep climbing. A single high-end processor now requires dozens of ALD cycles, linking ASM's revenue growth almost linearly to AI chip output.
Still, the 1.1 billion euro midpoint carries a plus-or-minus 5% range, leaving room for currency swings and the pace of fab tool installations. The euro has firmed slightly against the dollar since June, which could shave a few percentage points off reported revenue when ASM converts overseas sales. The company reports in euros but invoices many Asian customers in dollars.
Rival ASML, the dominant lithography supplier, reports quarterly results Wednesday and is expected to offer its own read on AI-driven demand. Together, the two Dutch firms account for a large share of the critical process tools required to manufacture every advanced chip. Their order books are viewed as a leading indicator for global semiconductor capital expenditure.
One open question is how long the AI investment cycle can run before capacity catches up with demand. Memory makers Samsung and SK Hynix have both signaled aggressive spending on high-bandwidth memory (HBM) lines, which use ASM's ALD tools for dielectric films. A Semiconductor Industry Association factbook notes that memory capex typically follows a boom-bust pattern, though AI workloads may smooth the cycle this time.
ASM's second-quarter bookings figure, which the company did not immediately disclose, will be parsed for signs of deceleration when the full earnings release is published. In the first quarter, orders rose 10% sequentially, and any dip could temper the stock's recent run. Shares have gained roughly 40% year-to-date, outpacing the broader European tech index.
The broader equipment industry is also navigating export controls. While ASM's ALD tools are not directly targeted by the latest U.S.-led restrictions, any tightening on advanced packaging equipment could eventually affect demand from Chinese customers, who accounted for about 22% of ASM's revenue last year. For now, those concerns remain secondary to the sheer volume of AI-related orders flowing into Dutch fabs.
ASM International will host a conference call at 10:00 a.m. Amsterdam time to discuss the results and outlook.
