ASML Earnings Preview: Capacity Expansion Guidance in Investor Focus

Odaily: ASML Holding NV (ASML.O)'s capacity expansion guidance has become a key focal point on its earnings release day. As the semiconductor sector's rally loses momentum, investors are eager for signs of confidence, making the capacity guidance all the more significant. After a strong rally in the first half of the year, semiconductor stocks have recently cooled off. Following another decline in US chip stocks, South Korean chipmakers' shares fell to a two-month low on Tuesday. Over the next 48 hours, investors will closely watch the earnings performance of ASML and its key customer TSMC, hoping the two companies can shore up market confidence.

Ben Barringer, Head of Technology Research at Quilter Cheviot, said: "Capacity is the biggest focus for the market right now. With no visibility into order data and limited backlog information, it is crucial for the company to raise its capacity targets." ASML previously stopped disclosing quarterly order data, citing significant order volatility, and instead began providing guidance on the number of units it expects to produce this year and in the coming years. Investors are increasingly relying on this metric to gauge demand strength and ASML's ability to expand supply. (Jinshi)