Citigroup says ASML's long-term order demand is improving and the market is shifting focus to post-2028 capacity expansion.

Citigroup analysts stated that Dutch semiconductor equipment manufacturer ASML plans to expand its chip manufacturing equipment capacity. In addition, some clients have already started showing interest in orders for 2029 and 2030, indicating continuously improving visibility regarding the company’s future demand. Citigroup analysts pointed out that market discussions around ASML’s stock are increasingly shifting to the scale of capacity expansion in 2028 and beyond, as well as the potential boost to the company’s profit margin from rising equipment prices and higher adoption rates of advanced lithography machines. ASML’s Chief Financial Officer Roger Dassen stated that the company has now completed pricing negotiations with major clients, and the impact of related price adjustments is expected to gradually become apparent from 2027 onwards. Citigroup believes that as client visibility over future equipment procurement improves, the focus of market attention on ASML is shifting from the short-term order performance to the longer-term potential for capacity growth, as well as the possible improvements to profit margins brought by changes in high-end equipment sales and pricing.