Buy the Dip? ASML's Early 2027-28 Outlook After A 55% Sales Surge

ASML just told investors it can’t fully meet customer demand for the next two years. Q3 2026 sales jumped 55%, and the outlook for 2027–2028 changed significantly. ASML just reported Q3 2026 results, and the numbers reshape the outlook for the entire wafer fab equipment industry. Net sales reached €11.66 billion, up 55% year over year. Memory chipmakers and installed base upgrades filled the gap left by softer logic spending. Net income came in near €5 billion (about €500 million of that came from ASML’s Mistral AI stake), and free cash flow surged after several lumpy quarters. In this video, we break down: • ASML’s sales by end market • Its profitability • Management’s guidance: roughly 52% revenue growth in Q4 2026, with record gross margin near 57% Most important, ASML now expects it can’t fully meet customer demand for the next two years. It is weighing capacity expansion beyond its planned 30% increase. Back in spring, we flagged 2028 as a possible slowdown year for semiconductor equipment. Here’s why that call looks different now. We also cover what this means for the Fab Five (Applied Materials, Lam Research, KLA, Tokyo Electron) after the post-June equipment sell-off, and why sector allocation matters more than stock picking at this stage of the AI infrastructure cycle. This video is sponsored by Fiscal.ai, the financial data platform we use every day at Chip Stock Investor. Get 15% off any paid plan at https://fiscal.ai/csi If you want the reasoning behind more names like this one, Semiconductor Insider covers the process in more depth. Get access to all our research, weekly live Q&A events, and a growing set of tools to build your process. Create your free demo account now at https://www.chipstockinvestor.com 📰 Why Chip Stock Investor Is Becoming a Software Business: https://chipstockinvestor.com/why-chip-stock-investor-is-becoming-a-software-business/ Linktree for all our socials: https://linktr.ee/chipstockinvestor If you found this video useful