ASM International lifts 2027 outlook above $5.23B as AI fuels orders

ASM International raised its 2027 revenue forecast above a prior range of $4.21 billion to $5.23 billion, the latest sign that AI-driven semiconductor equipment demand shows no sign of slowing.

"Strong orders and customer visibility support our confidence in exceeding the prior target," the company said in a statement.

The Dutch group also forecast third-quarter revenue above analyst estimates. The raised outlook comes as chipmakers including TSMC and Samsung expand capacity to meet surging demand for AI accelerators, which require advanced deposition and epitaxy tools that ASMI specializes in.

The guidance raise strengthens the investment case for semiconductor equipment suppliers, a sector that has benefited from AI-related capital expenditure. ASMI's peers — ASML, Applied Materials and Lam Research — are also seeing elevated order books as chip foundries race to add capacity.

ASMI's updated forecast adds to a string of positive signals from the semiconductor equipment industry. ASML, which dominates the market for lithography systems used to print chip circuitry, shipped 48 extreme ultraviolet machines in 2025 and has forecast 65 shipments this year and 85 in 2027, according to the company. Those machines, costing as much as $400 million each, are essential for producing the advanced chips used in Nvidia's AI accelerators.

The equipment spending cycle is being driven by a global buildout of data centers, with cloud providers and enterprises investing heavily in AI infrastructure. TSMC, the primary manufacturer of Nvidia's chips, has been expanding its advanced packaging capacity, while memory makers SK Hynix, Samsung and Micron are boosting production of high-bandwidth memory used alongside AI processors.

ASMI specializes in atomic layer deposition and epitaxy equipment, technologies critical for building the tiny transistor structures in leading-edge chips. The company's tools are used in both logic and memory production, giving it exposure across multiple segments of the semiconductor market. ASML holds a monopoly in extreme ultraviolet lithography and more than 80% of the deep ultraviolet segment, with Japanese rivals Nikon and Canon competing for the remainder, according to Reuters.

ASMI and its peers face growing complexity in navigating export controls. The US has pressured allies including the Netherlands to restrict shipments of advanced chipmaking tools to China, while Chinese competitors are developing domestic alternatives. ASML has said it faces new challengers from China in the mid-range of its product lineup, according to Reuters.

ASMI's raised outlook suggests the AI capex cycle has further to run, supporting revenue visibility for equipment suppliers through at least 2027. The company's forecast implies its revenue could exceed $5.23 billion that year. ASMI trades at a premium to some peers given its exposure to leading-edge deposition technology, but the guidance raise may narrow any valuation gap if the market has not fully priced in the pace of AI-driven order growth.

This article is for informational purposes only and does not constitute investment advice.