ASM surges! 2027 revenue target raised by 24%, announces up to 300 million euros share buyback plan | Earnings Report Highlights

ASM International has significantly raised its revenue forecast for next year, as the surging demand driven by AI infrastructure construction is set to help the Dutch chip equipment manufacturer achieve its 2030 growth target three years ahead of schedule.

On Tuesday, ASM International raised its 2027 revenue target by about 24% to over 5.7 billion euros (approximately $6.3 billion at constant exchange rates), up from its July forecast of more than 4.6 billion euros.

In terms of earnings performance, ASM's third-quarter revenue grew by 44% year-on-year at constant exchange rates to 1.16 billion euros, and net profit reached 308.1 million euros, with both indicators surpassing analysts' average expectations.

The company also announced a stock buyback plan of up to 300 million euros. After the announcement, ASM's American Depositary Receipts surged 7% to $838.9.

Chief Executive Officer Hichem M'Saad stated, "The demand environment remains very robust, our customers' capacity is under constant strain, and they are accelerating output."

The core driver of ASM's growth next year comes from dual demand by memory chip and advanced logic chip manufacturers—both are key raw materials for data center operators building AI infrastructure.

ASM's core products are thin film deposition equipment, used to deposit ultra-thin functional layers on the surface of wafers—a critical step in chip manufacturing. As customers accelerate capacity expansion and seek to improve chip efficiency and performance, ASM continues to win more orders.

ASM's customer base includes industry giants like TSMC and Intel. TSMC is responsible for manufacturing chips for Nvidia and Apple, with capital expenditures reaching as high as $64 billion; Intel, meanwhile, expects to invest about $20 billion this year in new plants and equipment.

The benefits of the AI investment wave are not exclusive to ASM. Dutch chip equipment manufacturer ASML said earlier this month that due to current capacity being unable to meet demand for orders in 2027 and 2028, the company is actively expanding production capacity.

The strong momentum of both companies reflects the advantageous position of the global chip equipment industry in the current AI capital expenditure cycle—core equipment supply remains tight, customers' bargaining power is limited, and leading equipment manufacturers can proactively manage expansion pace.