Shares in UK-listed technology companies climbed on Thursday after Dutch semiconductor equipment giant ASML delivered better-than-expected second-quarter results and raised its full-year outlook, powered by insatiable demand for artificial intelligence chips and a landmark order from Intel.
The FTSE 100 edged up 0.4% to 8,245 points by midday, with tech-heavy stocks leading the charge. Arm Holdings, the Cambridge-based chip designer, rose 2.8% to £112.40, while Welsh wafer maker IQE gained 3.1%. The broader Stoxx 600 technology index also rallied, reflecting the sector-wide relief that ASML's numbers had beaten cautious market forecasts.
ASML, which makes the lithography machines essential for producing the world's most advanced microchips, reported net sales of €6.8bn for the April-to-June period, above the consensus estimate of €6.5bn. Net profit came in at €1.9bn, beating analyst expectations of €1.7bn. The company said it now expects full-year 2026 revenue to grow by around 12%, up from its previous forecast of 8%, driven by 'unprecedented' demand for its extreme ultraviolet (EUV) machines used in AI processors.
Chief financial officer Roger Dassen said Intel had placed a 'significant multi-year order' for next-generation High-NA EUV tools, marking a milestone in the US chipmaker's turnaround strategy. 'This is not just a single quarter beat — it signals that the AI infrastructure buildout is accelerating,' said Sophie Lund-Yates, equity analyst at Hargreaves Lansdown. 'For UK investors, it reinforces the case for holding diversified tech exposure, though volatility remains a risk.'
The news is particularly relevant for UK pension holders and retail investors, as many diversified funds hold ASML shares or exposure to the semiconductor supply chain via London-listed trusts. However, analysts cautioned that a potential slowdown in consumer electronics demand and geopolitical tensions over chip exports could temper the rally. 'The sector is riding a wave, but the tide can turn quickly,' Lund-Yates added.