Citi: ASML's Order Visibility Continues to Improve, Capacity Expansion Scale and Margin Improvement Beyond 2028 Become Market Focus

Odaily News: Citigroup analysts said that Dutch semiconductor equipment manufacturer ASML plans to expand its chipmaking equipment capacity, and some customers have begun to express interest in orders for 2029 and 2030, indicating that the visibility of the company's future demand is continuing to improve. Citigroup analysts noted that market discussion around ASML's stock is increasingly shifting toward the scale of capacity expansion in 2028 and beyond, as well as the potential boost to the company's margins from higher equipment prices and increased adoption of advanced lithography machines.

ASML Chief Financial Officer Roger Dassen said the company has now completed pricing negotiations with major customers, and the impact of the related price adjustments is expected to gradually emerge starting in 2027. Citigroup believes that as customer visibility into long-term equipment procurement demand improves, the market's focus on ASML is shifting from short-term order performance to longer-term capacity growth potential, as well as the room for margin improvement brought by high-end equipment sales and pricing changes. (Jinshi)