European shares were trading in green on Wednesday, October 14, recovering from losses in the earlier session following Europe's most valuable company ASML's strong results that pushed the technology sector.
The European STOXX 50 was up 0.53% to 6,199.65 points by 5:30 GMT, after ending in red on Tuesday.
The rally comes as world's largest supplier of chipmaking equipment ASML surged 1.8% after informing that the AI-led demand for its chip-printing tools is so strong that it may not be able to completely meet customer demand in 2027 or 2028.
"With such strong visibility and an order book momentum that continues to increase quarter on quarter this year, we now expect that our supply as currently planned for both 2027 and 2028 will not fully meet the demand of our customers," ASML said.
The company said it is looking for measures to increase capacity for 2028 beyond the 30%.
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ASML raised its 2026 sales forecast to between €44 billion ($49 billion) and €45 billion. The lower end of the range was earlier €43 billion, while gross margin jumped to 57.5% in the previous quarter from 54% in the second quarter.
Speaking on outlook, ASML President and Chief Executive Officer Christophe Fouquet said, "We expect fourth-quarter 2026 total net sales between €14.2 billion and €15.2 billion, with a gross margin around 57%. We expect R&D costs of around €1.2 billion and SG&A costs of around €0.4 billion. We expect total net sales for 2026 to be between €44 billion and €45 billion, with a gross margin around 56%."
In the July to September quarter, net sales rose to €11.66 billion, ASML said, againts the average analyst estimate of €11.7 billion, according to data compiled by Bloomberg.
The company is also working to raise productivity for its customers via new products and upgrades for installed machines. ASml sold 17 EUV machines in the quarter under review and revenue from the service and upgrades of machines already installed at customers' sites jumped19% from the previous quarter.
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