Tech Stocks Poised for Recovery Amid Strong Earnings Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 11 2026
0mins
Should l Buy ASML?
Source: Fool
- Semiconductor Market Growth: McKinsey forecasts that global semiconductor market revenue will rise from $775 billion last year to between $1.5 trillion and $1.8 trillion by 2030, indicating strong growth potential, particularly as AI technology drives demand, positioning ASML and TSMC as major beneficiaries.
- ASML's Market Position: As the sole manufacturer of extreme ultraviolet (EUV) lithography machines, ASML plays a crucial role in the semiconductor ecosystem, with a projected 15% revenue increase in 2026, further solidifying its core position in AI chip production.
- TSMC's Strong Performance: TSMC anticipates a 30% revenue growth in 2026, with its largest customer Nvidia expecting to sell $1 trillion worth of AI chip systems in 2026 and 2027, indicating robust market demand that may exceed market expectations.
- AI Infrastructure Investment: According to Statista, AI infrastructure spending is expected to grow from $334 billion last year to $902 billion by 2029, driving demand for TSMC chips and enhancing the market outlook for both ASML and TSMC.
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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: 1501.810
Low
1385
Averages
1583
High
1911
Current: 1501.810
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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- High Dividend ETF Performance: The Vanguard International High Dividend Yield ETF has outperformed the other two funds with a 21% annualized return over three years and a trailing dividend yield of 3.47%, showcasing its competitiveness in high-yield investments.
- Strategy for Choosing International ETFs: While the S&P 500 has outperformed these international ETFs over the past five years, the Vanguard International High Dividend Yield ETF has excelled in the past year, suggesting that investors should select international ETFs based on their specific goals and investment styles.
See More
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- Supply Chain Security Collaboration: The European Commission has confirmed ongoing talks with the U.S. to explore EU participation in the Pax Silica alliance, which aims to secure supply chains for semiconductors and AI amid rising competition with China.
- Negotiation Progress: A Commission spokesperson stated in an email to Seeking Alpha that discussions are still ongoing, expressing hope that the EU will be able to join this significant international cooperation framework soon.
- Alliance Background: Launched in December 2025, the Pax Silica alliance aims to secure and diversify supply chains for semiconductors, AI, and critical minerals, with signatories including Australia, Finland, and India among others.
- Non-Signatory Participants: Although Taiwan is not a formal signatory, it participates as a non-signatory participant, highlighting the region's importance in the global supply chain landscape.
See More
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- Portfolio Expansion: Third Point made significant additions in Q1, initiating positions in tech and semiconductor firms like ASML, Lam Research, and KLA, reflecting a strong commitment to the AI trade and enhancing its competitive edge in the rapidly evolving tech landscape.
- Emerging Investments: The hedge fund also disclosed new stakes in the VanEck Semiconductor ETF and aircraft parts supplier TransDigm Group, indicating confidence in the semiconductor sector, particularly amid rising AI-driven market demand.
- Bitcoin Mining Positioning: Third Point increased its investment in Hut 8, a Miami-based energy infrastructure and bitcoin mining company, whose shares have more than doubled in 2026, highlighting investor interest in AI-related power demand and data center infrastructure opportunities.
- Position Adjustments: While Third Point reduced its stake in Taiwan Semiconductor by 35%, Amazon remains its largest equity holding, demonstrating confidence in the company's long-term growth potential despite a 10% reduction during the quarter.
See More
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- Strategic Partnership: ASML has signed a memorandum of understanding with Tata Electronics to provide lithography tools and solutions for its $11 billion semiconductor fab in India, marking a significant collaboration in the semiconductor sector.
- India's First 300mm Fab: The semiconductor facility located in Dholera, Gujarat, is expected to become India's first 300mm commercial fab, enhancing India's position in the global semiconductor supply chain.
- Talent and Supply Chain Development: The two companies will work together to develop domestic talent, optimize supply chains, and initiate research programs to support the long-term success of Tata Electronics' Dholera fab, thereby strengthening India's semiconductor manufacturing capabilities.
- Multi-Industry Application Prospects: Once operational, the Dholera facility is expected to produce semiconductors for various industries, including automotive, mobile electronics, and artificial intelligence, which will likely drive technological advancements and market growth in these sectors.
See More
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- Meta Stake Liquidation: D1 Capital completely exited its position of over 376,000 shares in Meta during Q1, previously valued at more than $240 million, reflecting concerns over the social media giant's ongoing decline, as Meta's stock fell over 13% in the quarter, marking its largest quarterly loss since 2022.
- Amazon Position Increase: Despite Amazon's stock dropping over 9% in Q1, D1 Capital increased its stake by more than 34%, making it the fund's eighth-largest holding with a current value of approximately $376.5 million, indicating confidence in the e-commerce giant's future growth potential.
- AI Investment Expansion: D1 Capital expanded its investments in AI stocks during Q1, including Broadcom and Nvidia, while also opening new stakes in Alphabet, ASML, and Taiwan Semiconductor, demonstrating a strategic focus on the AI sector to capitalize on future technological trends.
- Instacart Remains Leader: Instacart continues to be D1 Capital's largest holding in Q1, valued at $845 million, with Sundheim serving on its board since 2020, reflecting a strong commitment to the company's long-term investment potential.
See More
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- Ford Stock Decline: Ford's shares fell about 7% after a previous surge of over 20%, with analysts noting that recent gains were driven more by enthusiasm around battery storage ambitions than by solid fundamentals.
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