ASML reported record fourth-quarter orders and raised its 2026 outlook on Wednesday, although the giant chip equipment maker faced questions from analysts about whether it had the capacity to meet surging demand from artificial intelligence chipmakers.

The Dutch company also announced 1,700 job cuts, some 3.8% of its staff, as part of a broader plan to shed 3,000 management posts and hire engineers to focus on ​innovation. ASML’s orders exceeded expectations as the global chip market ramps up production capacity for the rollout of artificial intelligence and data centers, with demand rising ‍for its machines, ⁠which dominate the process for printing AI chips.

Orders leapt to a record €13.2 billion ($15.8 billion), from €7.1 billion ‍a year ago, beating Visible Alpha analyst forecasts of €6.32 billion.