Investor confidence surged after strong signals from the global chip sector lifted ASML to fresh record levels. Dutch semiconductor equipment maker ASML held on to gains after upbeat earnings from Taiwan based chipmaker TSMC, pushing its shares sharply higher and strengthening expectations of sustained demand linked to artificial intelligence.
ASML, the world’s only supplier of advanced photolithography machines used to make the most powerful AI chips, has seen its stock rise around 7% since TSMC released its results on Thursday. The company crossed a major milestone the same day, becoming only the third European firm to exceed a market value of $522 billion, or around 450 billion euros. So far in 2026, ASML shares are up 25%.
Analysts remain bullish on further upside. Morgan Stanley said in a note on Thursday that in its most optimistic scenario, ASML stock could rise by as much as 70%, driven by higher chipmaker spending to meet AI demand. Under this view, shares could climb to 2,000 euros if technology valuations continue to rise and profits beat expectations. The bank currently has a price target of 1,400 euros for the stock. “Higher 2027 foundry and memory capex as well as better than feared China demand drives our conviction for higher FY27 earnings,” the note said. “We expect order intake over the next 2 to 3 quarters to confirm this strength.”
TSMC’s capital spending outlook has added to the positive tone. According to an analyst note from Bank of America on Friday, the chipmaker’s capex guidance “significantly” exceeded earlier expectations. This, the analysts said, supports near term upside for ASML as extreme ultraviolet and advanced deposition tools become essential for efficiency gains in chip manufacturing.
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