On October 13, ASML (ASML.O) unveiled its capacity expansion guidance, which quickly became a focal point on the day its earnings report was released. Recently, the semiconductor sector’s rally has shown signs of fatigue, leaving investors in need of a confidence boost. Consequently, ASML’s capacity guidance has drawn particular attention. After a robust rally, semiconductor stocks have experienced a recent pullback. Following the downturn in U.S. chip stocks, shares of South Korean chipmakers also dropped to a two-month low on Tuesday. Over the next two days, investors will keep a close eye on the performance of ASML and its major client, TSMC, in the hope that these two companies can invigorate market confidence. Ben Barringer, Head of Technology Research at Quilter Cheviot, highlighted that the market’s current focus is on capacity issues. Given the lack of direct access to order data and limited information on backlog orders, the company’s decision to raise its capacity targets has taken on added significance. ASML has previously ceased disclosing quarterly order data, opting instead to provide guidance on the number of equipment units to be produced this year and in the years ahead. Investors are increasingly turning to this indicator as a barometer for gauging both the strength of demand and ASML’s ability to meet it.