ASML capacity expansion guidance becomes the focus of financial report as investors hope to boost confidence

ASML (ASML.US)'s capacity expansion guidance has become a key focus on its earnings release day. As the semiconductor sector's rally weakens, investors are eager for a boost in confidence, making this capacity guidance even more crucial. After a strong rally in the first half of the year, semiconductor stocks have recently cooled off. Following another decline in U.S. chip stocks, South Korean chip manufacturers' share prices fell to a two-month low on Tuesday. In the next 48 hours, investors will closely watch the earnings performance of ASML and its major client TSMC, hoping that both companies can restore market confidence. Ben Barringer, Head of Technology Research at Quilter Cheviot, said, "The market is currently most focused on capacity. With no access to order data and limited backlog information, it is vital for the company to raise its capacity targets." Previously, ASML stopped disclosing quarterly order data due to significant order fluctuations, instead providing guidance on the number of devices expected to be produced this year and in the coming years. Investors are increasingly relying on this indicator to judge demand strength and ASML's ability to expand supply.