ASML's Optimistic Outlook: Expected Growth in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy ASML?
Source: Fool
- Strong Market Demand: ASML, the sole manufacturer of extreme ultraviolet (EUV) equipment, with machines priced around $400 million, is expected to benefit from the semiconductor industry's ongoing boom, particularly with AI investments projected to reach nearly $700 billion by 2026.
- Outstanding Financial Performance: Over the past decade, ASML has achieved an average annual growth rate of 30%, with its stock surging nearly 80% in the last year, reflecting strong market performance and investor confidence.
- Significant Order Backlog: ASML's fourth-quarter backlog reached €38.8 billion (approximately $45 billion), with the CEO anticipating a substantial increase in EUV sales in 2026, further driving the company's performance.
- Innovation Amid Risks: Despite geopolitical risks and the need for continuous innovation, ASML's forward-looking P/E ratio of 40 significantly exceeds the five-year average of 33, indicating strong market confidence in its future growth.
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Analyst Views on ASML
Wall Street analysts forecast ASML stock price to rise
12 Analyst Rating
12 Buy
0 Hold
0 Sell
Strong Buy
Current: 1393.890
Low
1385
Averages
1583
High
1911
Current: 1393.890
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.
ASML: The Monopoly in Semiconductor Manufacturing
- Market Monopoly: ASML is the sole provider of advanced extreme ultraviolet (EUV) equipment, with machines priced around $400 million each and typically lasting for decades, ensuring its unique competitive advantage in semiconductor manufacturing.
- Strong Order Backlog: ASML's backlog reached €38.8 billion (approximately $45 billion), indicating robust demand for its products, with expectations for significant growth in EUV sales driving continued business expansion in 2026.
- Industry Growth Potential: With major tech companies projected to invest nearly $700 billion in artificial intelligence by 2026, ASML, as a critical equipment supplier, stands to benefit significantly, further solidifying its market position.
- Valuation and Risk Considerations: Although ASML's forward P/E ratio of 40 is well above the five-year average of 33, its unique market position and ongoing innovation capabilities make it an attractive option for risk-tolerant long-term investors.
See More
ASML's Optimistic Outlook: Expected Growth in 2026
- Strong Market Demand: ASML, the sole manufacturer of extreme ultraviolet (EUV) equipment, with machines priced around $400 million, is expected to benefit from the semiconductor industry's ongoing boom, particularly with AI investments projected to reach nearly $700 billion by 2026.
- Outstanding Financial Performance: Over the past decade, ASML has achieved an average annual growth rate of 30%, with its stock surging nearly 80% in the last year, reflecting strong market performance and investor confidence.
- Significant Order Backlog: ASML's fourth-quarter backlog reached €38.8 billion (approximately $45 billion), with the CEO anticipating a substantial increase in EUV sales in 2026, further driving the company's performance.
- Innovation Amid Risks: Despite geopolitical risks and the need for continuous innovation, ASML's forward-looking P/E ratio of 40 significantly exceeds the five-year average of 33, indicating strong market confidence in its future growth.
See More
US Stocks Under Pressure Amid Soaring Oil Prices
- Oil Price Surge Pressures Markets: Amid escalating uncertainty regarding Iran, WTI crude oil prices rose over 3%, contributing to a 0.64% drop in the S&P 500, a 0.16% decline in the Dow Jones, and a 1.05% fall in the Nasdaq 100, indicating market sensitivity to geopolitical risks.
- Strong Labor Market Data: Initial jobless claims in the US rose by 5,000 to 210,000, aligning with expectations, while continuing claims fell by 32,000 to a 1.75-year low of 1.819 million, suggesting a robust labor market that could influence a hawkish stance from the Fed.
- OECD Raises Inflation Forecast: The OECD increased its G-20 inflation forecast for 2026 from 2.8% to 4.0%, reflecting the potential economic impact of the Iran conflict, which may heighten investor concerns about future economic growth.
- Chip Makers Under Pressure: A new compression technique proposed by Google researchers, which could reduce memory requirements for AI workloads, has led to declines of over 5% in several chip manufacturers' stocks, further exacerbating overall market weakness.
See More
Surging Oil Prices Trigger Market Volatility
- Oil Price Surge: WTI crude oil prices rose over 4% today as the Pentagon develops military options against Iran, raising concerns about future supply disruptions and contributing to a 0.50% decline in the S&P 500 Index.
- Labor Market Stability: Initial jobless claims in the U.S. rose by 5,000 to 210,000, aligning with expectations, while continuing claims fell by 32,000 to a 1.75-year low of 1.819 million, indicating resilience in the labor market despite cautious economic outlooks.
- OECD Inflation Forecast Raised: The OECD increased its G-20 inflation forecast for 2026 from 2.8% to 4.0%, reflecting the potential economic impacts of the war in Iran, which may lead investors to reassess market risks.
- Escalating Tensions in the Middle East: Saudi Arabia's agreement to allow U.S. military access to King Fahd Air Base signals increased regional pressure on Iran, potentially leading to broader military conflict that could further disrupt global oil and gas supply chains.
See More
ASML's $8 Billion Agreement: A Vision Beyond a Simple Acquisition
Significant Investment in AI Technology: ASML has secured a $7.97 billion order from SK Hynix for advanced Extreme Ultraviolet (EUV) lithography systems, marking a strategic investment that signals confidence in the future of AI hardware and technology.
Long-Term Revenue Visibility: This multi-year order backlog provides ASML with exceptional long-term revenue visibility, insulating the company from short-term market fluctuations and enhancing its financial outlook.
Critical Role in AI Development: The deal reinforces ASML's essential role in the semiconductor industry, particularly in supplying high-bandwidth memory chips crucial for AI applications, thereby solidifying its market position.
Investor Confidence and Market Position: ASML's dominant market position and high valuation reflect its unique competitive advantages, making it a key player in the ongoing AI revolution and attracting significant investor interest.
See More
ASML Faces Employee Backlash Over Job Cuts
- Mass Walkout: Over 1,000 ASML employees staged a mass walkout at the Veldhoven headquarters, protesting the proposed elimination of 1,700 positions, which represents nearly 4% of the company's global workforce, indicating significant internal dissent against the restructuring initiative.
- Restructuring Context: The job cuts were first announced in January as part of a broader strategic plan to eliminate 3,000 middle-management roles, which ASML argues is necessary to streamline bureaucracy and refocus engineering teams on innovation.
- Union Opposition: FNV Union representative Peter Reniers urged ASML management to reconsider the layoffs, emphasizing the company's strong financial position with projected profits of €9.6 billion in 2025, suggesting that reorganization could occur without job losses.
- Future Plans: ASML acknowledged employee concerns and stated it would continue with its reorganization plans, which include retraining and severance packages, with unions set to respond to the proposed social plan on April 7 and the works council providing formal advice in May.
See More
ASML: The Monopoly in Semiconductor Manufacturing
- Market Monopoly: ASML is the sole provider of advanced extreme ultraviolet (EUV) equipment, with machines priced around $400 million each and typically lasting for decades, ensuring its unique competitive advantage in semiconductor manufacturing.
- Strong Order Backlog: ASML's backlog reached €38.8 billion (approximately $45 billion), indicating robust demand for its products, with expectations for significant growth in EUV sales driving continued business expansion in 2026.
- Industry Growth Potential: With major tech companies projected to invest nearly $700 billion in artificial intelligence by 2026, ASML, as a critical equipment supplier, stands to benefit significantly, further solidifying its market position.
- Valuation and Risk Considerations: Although ASML's forward P/E ratio of 40 is well above the five-year average of 33, its unique market position and ongoing innovation capabilities make it an attractive option for risk-tolerant long-term investors.
See More
ASML's Optimistic Outlook: Expected Growth in 2026
- Strong Market Demand: ASML, the sole manufacturer of extreme ultraviolet (EUV) equipment, with machines priced around $400 million, is expected to benefit from the semiconductor industry's ongoing boom, particularly with AI investments projected to reach nearly $700 billion by 2026.
- Outstanding Financial Performance: Over the past decade, ASML has achieved an average annual growth rate of 30%, with its stock surging nearly 80% in the last year, reflecting strong market performance and investor confidence.
- Significant Order Backlog: ASML's fourth-quarter backlog reached €38.8 billion (approximately $45 billion), with the CEO anticipating a substantial increase in EUV sales in 2026, further driving the company's performance.
- Innovation Amid Risks: Despite geopolitical risks and the need for continuous innovation, ASML's forward-looking P/E ratio of 40 significantly exceeds the five-year average of 33, indicating strong market confidence in its future growth.
See More
US Stocks Under Pressure Amid Soaring Oil Prices
- Oil Price Surge Pressures Markets: Amid escalating uncertainty regarding Iran, WTI crude oil prices rose over 3%, contributing to a 0.64% drop in the S&P 500, a 0.16% decline in the Dow Jones, and a 1.05% fall in the Nasdaq 100, indicating market sensitivity to geopolitical risks.
- Strong Labor Market Data: Initial jobless claims in the US rose by 5,000 to 210,000, aligning with expectations, while continuing claims fell by 32,000 to a 1.75-year low of 1.819 million, suggesting a robust labor market that could influence a hawkish stance from the Fed.
- OECD Raises Inflation Forecast: The OECD increased its G-20 inflation forecast for 2026 from 2.8% to 4.0%, reflecting the potential economic impact of the Iran conflict, which may heighten investor concerns about future economic growth.
- Chip Makers Under Pressure: A new compression technique proposed by Google researchers, which could reduce memory requirements for AI workloads, has led to declines of over 5% in several chip manufacturers' stocks, further exacerbating overall market weakness.
See More
Surging Oil Prices Trigger Market Volatility
- Oil Price Surge: WTI crude oil prices rose over 4% today as the Pentagon develops military options against Iran, raising concerns about future supply disruptions and contributing to a 0.50% decline in the S&P 500 Index.
- Labor Market Stability: Initial jobless claims in the U.S. rose by 5,000 to 210,000, aligning with expectations, while continuing claims fell by 32,000 to a 1.75-year low of 1.819 million, indicating resilience in the labor market despite cautious economic outlooks.
- OECD Inflation Forecast Raised: The OECD increased its G-20 inflation forecast for 2026 from 2.8% to 4.0%, reflecting the potential economic impacts of the war in Iran, which may lead investors to reassess market risks.
- Escalating Tensions in the Middle East: Saudi Arabia's agreement to allow U.S. military access to King Fahd Air Base signals increased regional pressure on Iran, potentially leading to broader military conflict that could further disrupt global oil and gas supply chains.
See More
ASML's $8 Billion Agreement: A Vision Beyond a Simple Acquisition
Significant Investment in AI Technology: ASML has secured a $7.97 billion order from SK Hynix for advanced Extreme Ultraviolet (EUV) lithography systems, marking a strategic investment that signals confidence in the future of AI hardware and technology.
Long-Term Revenue Visibility: This multi-year order backlog provides ASML with exceptional long-term revenue visibility, insulating the company from short-term market fluctuations and enhancing its financial outlook.
Critical Role in AI Development: The deal reinforces ASML's essential role in the semiconductor industry, particularly in supplying high-bandwidth memory chips crucial for AI applications, thereby solidifying its market position.
Investor Confidence and Market Position: ASML's dominant market position and high valuation reflect its unique competitive advantages, making it a key player in the ongoing AI revolution and attracting significant investor interest.
See More
ASML Faces Employee Backlash Over Job Cuts
- Mass Walkout: Over 1,000 ASML employees staged a mass walkout at the Veldhoven headquarters, protesting the proposed elimination of 1,700 positions, which represents nearly 4% of the company's global workforce, indicating significant internal dissent against the restructuring initiative.
- Restructuring Context: The job cuts were first announced in January as part of a broader strategic plan to eliminate 3,000 middle-management roles, which ASML argues is necessary to streamline bureaucracy and refocus engineering teams on innovation.
- Union Opposition: FNV Union representative Peter Reniers urged ASML management to reconsider the layoffs, emphasizing the company's strong financial position with projected profits of €9.6 billion in 2025, suggesting that reorganization could occur without job losses.
- Future Plans: ASML acknowledged employee concerns and stated it would continue with its reorganization plans, which include retraining and severance packages, with unions set to respond to the proposed social plan on April 7 and the works council providing formal advice in May.
See More
