Semiconductor Industry Fuels AI Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: Fool
- Industry Growth Forecast: According to Gartner, the semiconductor industry's revenue is expected to surge by 64% to $1.32 trillion in 2026, and exceed $1.55 trillion in 2027, which will significantly enhance the profitability of related companies.
- TSMC Market Share Increase: TSMC's foundry market share rose from 68% to 73% in Q1 2023, driven by strong demand for its advanced 5nm, 3nm, and 2nm process nodes, with revenue expected to grow at over 20% going forward.
- ASML Equipment Demand Surge: ASML raised its 2026 revenue guidance to €36 billion to €40 billion, reflecting robust demand for its extreme ultraviolet (EUV) machines, with a forecasted 25% increase in low-NA EUV shipments this year, followed by a 33% jump in 2027.
- Investor Confidence Boost: With strong performances from TSMC and ASML, analysts are optimistic about both companies' future growth potential, as TSMC's stock has soared 111% over the past year and ASML's by 148%, indicating strong market confidence in the semiconductor sector.
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Analyst Views on ASML
Wall Street analysts forecast ASML stock price to fall
12 Analyst Rating
12 Buy
0 Hold
0 Sell
Strong Buy
Current: 1825.070
Low
1385
Averages
1583
High
1911
Current: 1825.070
Low
1385
Averages
1583
High
1911
About ASML
ASML Holding N.V. is a holding company based in the Netherlands. The Company operates through its subsidiaries in the Netherlands, the United States, Italy, France, Germany, the United Kingdom, Ireland, Belgium, South Korea, Taiwan, Singapore, China, Hong Kong, Japan, Malaysia and Israel. The Company operates through one business segment which is engage in development, production, marketing, sales, upgrading and servicing of advanced semiconductor equipment systems, consisting of lithography, metrology and inspection systems. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Investment Themes Focus: Goldman recommends focusing on five themes: infrastructure, basic materials, aerospace and defense, manufacturing, and consumer platforms, with buy-rated stocks including Enel, Airbus, and Volvo, reflecting strong investment confidence in these areas.
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- Sales Forecast: Bernstein's David Dai predicts ASML will sell 91 machines in 2027 and 113 in 2028, with prices expected to exceed this year's, indicating robust demand for advanced logic and DRAM capacity.
- Revenue Growth Outlook: Dai anticipates ASML's revenue will grow at a 30% annual rate, reaching €42.7 billion ($48.8 billion) by 2030, significantly enhancing the company's market position and financial health.
- Samsung's Impact: Despite ASML's strong fundamentals, its stock fell 4.6% due to Samsung's Q2 earnings report falling short of expectations, highlighting market sensitivity to short-term fluctuations despite long-term growth potential.
See More
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- Rising Oil Prices: Following attacks in the Strait of Hormuz, WTI crude oil prices surged over 2%, raising inflation expectations and pushing bond yields higher, with the 10-year T-note yield reaching a 3.5-week high of 4.52%.
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