On Friday, ASML Holding set fresh all-time highs after chip foundry giant TSMC reported stronger-than-expected quarterly results. Since TSMC’s earnings release, ASML shares have climbed roughly 7%, pushing the company’s valuation past €450 billion (approximately $522 billion). This makes ASML only the third European firm ever to exceed a half-trillion-dollar market capitalization and cements its status as Europe’s most valuable company. The rally has driven a nearly 25% gain for the stock so far in 2026, underscoring investor confidence in its long-term growth trajectory.

Analyst houses remain overwhelmingly positive on ASML’s prospects. Morgan Stanley’s bull-case scenario projects a potential 70% upside from current levels, forecasting a path to €2,000 per share should AI-related capital spending continue to accelerate. The same note sets a more conservative price target of €1,400, based on higher 2027 foundry and memory capex and resilient China demand. Meanwhile, RBC Capital initiated coverage with an Outperform rating and a €1,550 forecast, citing sustained AI investment, tight memory supply, and growing adoption of high-bandwidth memory as key tailwinds for EUV tool demand over the next 18–24 months.

ASML remains the sole supplier of extreme ultraviolet lithography systems essential for cutting-edge logic and memory production. Demand is underpinned by TSMC’s decision to raise its 2026 capital expenditure guidance to $52–$56 billion—well above consensus—signaling robust orders for ASML’s EUV and advanced deposition tools. Looking ahead, the firm is advancing its High-NA EUV platform, which promises to replace multi-pattern deep-UV processes and enable sub-2 nm node production. Together, these factors are expected to sustain strong order intake over the next two to three quarters and support mid-teens revenue growth in fiscal 2026.