ASML reported second-quarter earnings and sales that beat forecasts as it continues to see a recovery in demand for its machines that are required to make the world’s most advanced chips.

Here’s how ASML did versus LSEG consensus estimates:

• Net sales: 6.24 billion euros ($6.8 billion) versus 6.03 billion euros expected
• Net profit: 1.58 billion euros versus 1.43 billion euros expected

ASML previously forecast second-quarter net sales of between 5.7 billion euros and 6.2 billion euros.

The Dutch firm is one of the most important semiconductor companies in the world, producing tools known as extreme ultraviolet (EUV) lithography machines, which are required to manufacture the most advanced chips.

ASML has previously called 2024 a “transition” year as it expects the semiconductor industry to start to recover after a tough 2023.

The company also faces geopolitical headwinds. Following pressure from the U.S., the Dutch government last year introduced curbs on the export of advanced semiconductor equipment — including ASML’s machinery.

ASML previously said that export restrictions would impact 10% to 15% of it’s China sales this year.

As semiconductor stocks across the board have rallied this year, ASML has also seen its share price lifted 44%.

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