ASML hits record high on AI boost — and analysts see plenty of room to run

Dutch semiconductor instrumentality institution ASML has held gains to deed grounds highs, pursuing Taiwanese chipmaker TSMC's beardown net study connected Thursday.

ASML — Europe's astir invaluable institution and the world's lone supplier of the analyzable photolithography machines needed to manufacture the astir precocious artificial quality chips — has seen shares emergence astir 7% since TSMC's net were released.

The institution became conscionable the 3rd European institution to spot its valuation tick supra the half-trillion dollar people connected Thursday, seeing its marketplace headdress deed astir 450 cardinal euros ($522 billion). ASML's banal has rallied 25% truthful acold successful 2026.

Morgan Stanley connected Thursday said successful its bull lawsuit the Dutch company's banal could person a surge of 70% up arsenic chipmaker spending continues to emergence to conscionable AI demand. That script sees shares emergence up to 2,000 euros if tech valuations proceed to spike and profits bushed expectations, the slope added, portion its terms people is 1,400 euros.

"Higher 2027 foundry and representation capex arsenic good arsenic amended than feared China request drives our condemnation for higher FY27 earnings," the Morgan Stanley enactment said. "We expect bid intake implicit the adjacent 2-3 quarters to corroborate this strength."

TSMC's capex guidance "significantly" exceeded anterior expectations, Bank of America said successful an expert enactment connected Friday, underpinning near-term upside for ASML "as EUV [extreme ultraviolet] and precocious deposition tools go captious for ratio gains."

Companies embedded successful the planetary AI contention person seen beardown performances arsenic request for the exertion has soared.

The commencement of 2026 has seen a stock rally among companies providing representation chips, which are important components to precocious semiconductors designed by Nvidia and AMD. Memory prices are expected to emergence different 40-50% successful Q1 of 2026, according to Counterpoint Research.

"ASML banal has been connected a teardrop owed to the imaginable for beardown capex astatine semi manufacturers starting precocious '26," JPMorgan said successful a enactment connected Wednesday. "Samsung, the lone DRAM large with disposable cleanable country capacity, is apt to summation orders astir importantly successful the quarter, portion TSMC orders are besides apt to beryllium strong."

DRAM, referring to Dynamic Random Access Memory, is simply a benignant of representation spot needed to store information required for AI processing.

Earlier this month, large Nvidia spouse Foxconn — the world's largest declaration electronics shaper and shaper of servers that clasp chips successful information centers — reported a 22% surge successful revenues successful the last 4th of 2025.

TSMC, which is ASML's largest customer, got different boost connected Thursday arsenic the U.S. announced it would limit tariffs connected Taiwan to 15%, with spot and exertion companies from the state investing astatine slightest $250 cardinal successful accumulation capableness successful the U.S.

ASML is owed to study its fourth-quarter net connected Jan. 28.