AI TRENDS | ASML and TSMC Report Strong Earnings, Highlighting Robust AI Demand

ASML's first-quarter earnings met market expectations, and the company has raised its revenue guidance for 2026. According to Jin10, UBS noted on April 16 that ASML typically revises its guidance around mid-year, making this upward adjustment significant as it indicates increased visibility of strong demand under long-term supply agreements. Additionally, TSMC reported a 58% increase in first-quarter profits, surpassing expectations and setting a new record. TSMC also forecasts that its second-quarter sales will reach new highs and stated that this year's capital expenditures will be at the high end of its previous guidance range. UBS believes that the performances of ASML and TSMC confirm the ongoing strong demand for AI computing as AI applications continue to proliferate. UBS also mentioned that major U.S. tech companies will release their earnings in the coming weeks, with investors closely watching their monetization efforts and outcomes. The bank remains optimistic about AI as a long-term trend and advises investors to diversify across the AI value chain and different regions.