Chip, storage shares extended rally in overnight trading. SOXL up 7%; ASML soars 5%; Lam Research, Applied Materials, Wolfspeed, Intel up over 4%.

Dutch semiconductor equipment manufacturer ASML Holding NV has increased its full-year sales forecast for the second time in 2024, driven by robust demand for its advanced chip-making machines fueled by a surge in artificial intelligence spending.

The company, which is Europe's most valuable, now expects net sales for the year to reach between €43 billion and €45 billion, according to a statement released on Wednesday. This marks an upward revision from its April projection of €36 billion to €40 billion in annual sales.

ASML occupies a critical position in the global semiconductor supply chain as the sole manufacturer of the sophisticated lithography systems essential for producing advanced chips. These include the processors from Nvidia Corp. that are fundamental for training and operating AI models in data centers. As major technology firms like Microsoft Corp and Alphabet Inc. commit hundreds of billions of dollars to build out AI infrastructure, chip manufacturers are racing to expand their production capabilities.