Booming AI Demand Catapults ASML to Record Orders Amidst Strategic Job Cuts

ASML, a leading computer chip equipment maker, achieved record orders in Q4, driven by AI-focused demand despite cutting 1,700 jobs. Orders soared to 13.2 billion euros, exceeding expectations. The firm raised its 2026 sales outlook, while addressing job cuts for agility in R&D departments in the Netherlands and U.S.

Leading computer chip equipment manufacturer ASML has reported a record-breaking surge in orders for the fourth quarter, driven largely by an increasing demand from AI-focused clients. This announcement comes as the company also revealed plans to trim 1,700 jobs, representing 3.8% of its workforce, in a bid to enhance technical agility within its R&D departments situated in the Netherlands and the U.S.

ASML's Q4 bookings catapulted to an unprecedented 13.2 billion euros, significantly surpassing analyst predictions of 6.32 billion euros. This exceptional performance has pushed ASML's shares up by 4.2% in morning trading, with the stock experiencing a remarkable 38% increase this year. The company's 2026 sales guidance has been lifted to a range of 34 to 39 billion euros, underscoring robust AI-related demand.

While navigating job reductions amidst soaring orders, ASML is positioned to benefit from substantial investments by clients like TSMC, Samsung, SK Hynix, and Micron. These firms are capitalizing on the surge for AI logic and memory chips necessary for giants in the cloud computing space, including Microsoft and Google. Despite export restrictions impacting sales in China, ASML remains on a strong trajectory for future growth.