ASML’s shares have appreciated significantly over the past year, reflecting strong investor confidence in its leadership of the lithography market. While the current share price fully reflects near-term growth expectations, our conviction remains intact with a Buy rating. The company’s unrivaled technology portfolio—anchored by extreme ultraviolet (EUV) systems—continues to underpin robust order inflows, ensuring pricing power across its product lines. Longer-term demand for ASML’s tools is expected to be driven by artificial intelligence applications in data centers and edge computing. Industry forecasts point to a sustained increase in advanced logic and memory fabrication, with hyperscale operators planning to ramp capacity in the post-2027 window. This structural tailwind should support a second growth leg, as customers seek increasingly capable nodes enabled only by EUV and next-generation High-NA lithography. Recent data from major foundries indicate a pronounced uptick in wafer fabrication equipment spending. Taiwan Semiconductor Manufacturing Company’s announced capital expenditure increase of over 20% for 2025 underscores aggressive capacity additions. Coupled with European and U.S. fab investments supported by government incentives, ASML is positioned to capture a significant share of industry-wide spending, reinforcing revenue visibility into the mid-2020s. Analyst consensus for ASML’s fourth quarter 2025 points to revenue of $11.1 billion (up 15.1% year-over-year) and adjusted EPS of $8.73 (up 22.5%). Although these estimates reflect healthy growth, actual results and the trajectory for 2026–2027 will hinge on management’s forward guidance. Key metrics to watch include system order intake, delivery cadence of EUV units and early signals around next-generation tool development timelines.