ASML Holding lifted its annual guidance for the second time, signaling unrelenting demand for its semiconductor-making tools as the race to build artificial-intelligence infrastructure turns chips into a hot commodity. The Dutch group supplies machines that use light to print tiny patterns forming circuits inside modern semiconductors, making it a go-to for big chip makers like Taiwan Semiconductor Manufacturing, Samsung Electronics, and Intel as they face growing demand from their own customers.

The race to build out AI infrastructure—backed by hundreds of billions of dollars in investments from some of the world's largest tech groups—has ushered in a scramble for the sophisticated chips needed to power data centers, with ASML reaping the benefits as chip makers need more of its machines to satisfy demand.

ASML said Wednesday that it was projecting annual sales between €43 billion and €45 billion, equivalent to $49.11 billion to $51.39 billion, compared with prior guidance of €36 billion to €40 billion. Meanwhile, its gross margin—a closely watched metric of pricing power and profitability—is expected between 54% and 56% compared with 51% to 53% previously.