TLDR
- ASML stock climbed over 7% Thursday, pushing market cap above $500 billion
- Partner TSMC’s earnings beat sparked the rally with 35% profit growth
- Shares touched record €1,167 as European semiconductor stocks rallied
- RBC Capital started coverage with Outperform rating and $1,550 target
- Analysts cite AI chip demand, tight DRAM supply, and EUV growth as drivers
ASML made history Thursday by breaking through the $500 billion market cap barrier. Shares of the Dutch chip equipment giant surged more than 7% to an all-time high.
The move came right after TSMC posted earnings that blew past expectations. Taiwan Semiconductor’s net income jumped 35% year-over-year to $16.3 billion.
ASML’s stock price hit €1,167 during the session. The company’s market value reached approximately 443 billion euros, or $515 billion.
This keeps ASML on top as Europe’s most valuable publicly traded company. No other European firm comes close to matching its valuation.
The relationship between ASML and TSMC runs deep. TSMC purchases ASML’s sophisticated photolithography equipment to produce advanced chips. When TSMC thrives, ASML typically follows.
European chip stocks rallied across the board following TSMC’s results. The positive sentiment swept through the entire sector.
Analysts Raise the Bar
RBC Capital launched coverage on ASML Wednesday with an Outperform rating. The firm set its price target at $1,550, representing upside from current levels around $1,264.
RBC pointed to several growth drivers. Wafer fab equipment spending is improving. Extreme ultraviolet lithography technology continues gaining adoption.
The firm expects momentum to carry through 2026 and 2027. Generative AI applications are fueling chip demand at unprecedented levels.
DRAM supply remains constrained. EUV intensity across manufacturing processes keeps rising. Samsung’s potential recovery in HBM4 memory production could add fuel.
In logic chips, GenAI accelerators are moving to more advanced process nodes. Foundry competition is ramping back up after a quiet period.
Strong Performance Continues
ASML delivered a 73.91% total return over the past year. The stock gained 58.02% in just the last six months alone.
Shares trade at a P/E ratio of 44.75. Analyst price targets range from $843.92 on the low end to $1,520.48 on the high end.
RBC noticed ASML’s valuation premium versus U.S. competitors has compressed. The firm views this as creating an attractive entry point.
China-related concerns appear priced into shares already. ASML’s services business should continue expanding at double-digit rates going forward.
The company holds a unique position in chip manufacturing. Its EUV lithography machines are essential for making the most advanced semiconductors. The technology has no real competition.
ASML beat the SOX semiconductor index throughout 2025. While other chip stocks stumbled, ASML kept climbing higher.
TSMC’s Guidance Boosts Confidence
TSMC didn’t just beat on earnings. The company provided strong guidance for upcoming quarters.
That forward-looking statement gave investors confidence about sustained demand. The optimism translated directly into buying pressure for ASML shares.
By mid-morning GMT, ASML shares were still trading around 5% higher. The stock settled below its intraday peak but maintained strong gains.
The $500 billion market cap milestone represents more than just a round number. It validates ASML’s position as the linchpin of global semiconductor manufacturing.
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