ASML signals capacity flexibility for EUV tools, prompting JP Morgan to raise earnings estimates for 2027 and 2028.
JP Morgan has upgraded its earnings estimates for ASML Holding NV (NASDAQ:ASML) after the company indicated it can supply more EUV lithography tools than previously guided. ASML now expects to ship at least 80 low-NA EUV tools in 2027, up from earlier cautious projections.
The reassessment follows ASML’s shift in messaging, suggesting its manufacturing capacity is more adaptable. The company stated its 90-unit ceiling is not a hard limit and output can expand without new cleanroom construction. JP Morgan identified four methods to boost production, including repurposing R&D space and adjusting high-NA tool capacity.
ASML’s updated guidance reflects improved flexibility in meeting demand for advanced semiconductor equipment, particularly as chipmakers ramp up production of cutting-edge chips.