Dutch semiconductor equipment company ASML Holding NV has reported its second-quarter earnings, exceeding analyst expectations and providing a strong outlook for the rest of the year.

In its earnings report, ASML reported net sales of €6.24 billion ($6.8 billion), beating the estimated €6.03 billion from analysts. The company’s net income for the quarter was €1.58 billion, exceeding the expected €1.43 billion.

The company’s strong performance was driven by a continued surge in demand for its lithography systems, which are used to manufacture semiconductors. ASML’s CEO, Peter Wennink, attributed the company’s success to its ability to navigate the challenges in the global supply chain and maintain a high level of production capacity.

“We are pleased to report another strong quarter, with both sales and profitability above our expectations,” Wennink said in a statement. “We are well-positioned to continue to meet the growing demand for our products, despite the challenges in the global supply chain.”

Looking ahead, ASML is expecting its total net sales for 2024 to be similar to its 2023 results. This is a significant increase from last year, when the company’s net sales grew by 14% to €14.2 billion.

The company’s strong performance is a welcome sign for the global semiconductor industry, which has been grappling with supply chain disruptions and a shortage of components. ASML’s products play a critical role in the manufacturing process of semiconductors, and the company’s ability to deliver its products on time is essential for the production of high-tech devices such as smartphones, laptops, and cars.

“We are optimistic about the outlook for the industry, despite the current challenges,” said John Monfrini, an analyst at Jeffries LLC. “ASML is a key player in the industry, and its ability to deliver its products on time is critical to the production of semiconductors.”

Overall, ASML’s strong earnings report and positive outlook are likely to be a boost to the broader semiconductor industry, and investors will be closely watching the company’s performance in the coming months to see if it can continue to deliver on its promises.