Dutch chip equipment manufacturer ASM International NV has issued a strong performance forecast, indicating that the investment boom in AI infrastructure is accelerating its transmission to the upstream equipment sector.
The company anticipates a midpoint second-quarter revenue of €980 million, approximately 10% higher than the average analyst estimate. CEO Hichem M'Saad stated that the rapid expansion of AI applications is driving faster investment in computing power infrastructure, with a noticeable increase in customer purchasing urgency. Following the announcement, ASM's US depositary receipts surged by up to 6.6% during the trading session. ASM also disclosed that initial investments for pre-commercial production lines targeting 1.4-nanometer chip technology are expected in the second half of this year. This development has the potential to further expand market opportunities and provide new growth momentum for equipment demand.
AI Investment Acceleration Drives Chip Equipment Purchases
A statement released by ASM International after Tuesday's market close indicated that the company expects second-quarter revenue, calculated at constant exchange rates, to be approximately €980 million, with a margin of fluctuation around 5%. This guidance significantly surpasses the Bloomberg-compiled average analyst estimate of €887 million. In the first quarter, ASM's revenue increased to €862.5 million, also exceeding market expectations. The company's stock has accumulated a gain of over 60% year-to-date. Tech giants like Alphabet and startups such as OpenAI have allocated hundreds of billions of dollars this year for data centers and related infrastructure construction. The explosion in demand for high-performance chips is progressively transmitting upstream to the chip equipment sector where ASM operates. Christophe Fouquet, CEO of fellow Dutch chip equipment giant ASML Holding NV, also remarked this month that chip demand is "exceeding supply," prompting wafer fabs to accelerate their production expansion plans. ASML has already revised its full-year sales outlook upwards, aided by the AI boom.
Advanced Process Layout Continues to Deepen
ASM primarily specializes in "deposition equipment," used in the manufacturing of advanced chips. Currently, the company is gaining strong momentum from clients transitioning to 2-nanometer processes and "gate-all-around" architectures. Its equipment can deposit films as thin as a single atom, which helps improve chip energy efficiency. Looking further ahead, the company anticipates initial investments for pre-commercial 1.4-nanometer process production lines in the second half of this year. ASM believes this will further enlarge the market scale. Hichem M'Saad also highlighted external risks, noting that "the situation in the Middle East, rising energy prices, and their potential impact on global GDP growth are making the overall macroeconomic backdrop more uncertain." However, he emphasized that end-market demand "remains primarily driven by AI." It is noteworthy that ASM ceased disclosing quarterly order data starting from the first quarter, citing that this metric does not accurately reflect the company's business condition.
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