Question of the Day

ASML can raise its 2026 outlook despite planning to install only 60-80 EUV tools through 2027 because of several key factors:

1. **High Demand and Backlog**: ASML has strong demand for its EUV tools, with significant orders and a large backlog of EUR 45.06 billion as cited by analysts [2], [5]. The demand is driven by AI infrastructure investments and the semiconductor market's projected growth, which ASML is well-positioned to capitalize on through its dominant EUV technology [1], .

2. **Installed Base Management**: Growth in ASML's Installed Base Management segment contributes significantly to revenue, as it includes recurring revenue from servicing and upgrading current installations, which is expected to constitute about a quarter of ASML's top line [4].

3. **Capacity and Revenue Mix**: Although the number of EUV systems projected to be sold may seem moderate, the high value of each system and related service contracts contribute to the projected revenue growth. ASML's strategic focus on its high-value systems sustains revenue increases [3], [4].

Therefore, the combination of high demand, a strong backlog, and recurring revenue from installed-base services underpins ASML's optimistic outlook, irrespective of the number of new EUV tools installed [5].