ASML's Key Role in AI Chip Supply Chain
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 19h ago
0mins
Source: Yahoo Finance
- Market Leadership: ASML holds a 90% market share in extreme ultraviolet (EUV) technology, being the sole manufacturer of EUV equipment, which has propelled its market cap to over $500 billion, showcasing its strong competitive edge amid surging AI chip demand.
- Client Investment Surge: TSMC plans to increase capital spending by 37% to $56 billion in 2026, while Samsung and SK Hynix target 24% and 25% increases respectively, indicating chipmakers are ramping up investments in ASML's equipment to address supply shortages.
- Strong Stock Performance: ASML's shares have doubled since April last year and risen 25% this month, reflecting optimistic market expectations for its future performance, with analysts anticipating an upward revision of sales growth forecasts for 2026 in the upcoming earnings report.
- Sustained Technological Advantage: Despite competition from Nikon, Canon, and China's SMEE in the lower-end DUV market, ASML's dominance in the advanced chip sector is expected to persist for years, with industry investments in its future tools reaching billions of dollars, highlighting clients' heavy reliance on its technology.
Analyst Views on ASML
Wall Street analysts forecast ASML stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ASML is 1344 USD with a low forecast of 1140 USD and a high forecast of 1500 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
6 Buy
1 Hold
0 Sell
Strong Buy
Current: 1413.350
Low
1140
Averages
1344
High
1500
Current: 1413.350
Low
1140
Averages
1344
High
1500
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.
