Key Highlights
- Elon Musk described ASML as “arguably the greatest company in Europe” via X on Saturday, just days before his scheduled appearance at the firm’s exclusive technology conference on Thursday
- The Tesla CEO requires ASML’s cutting-edge extreme ultra-violet (EUV) lithography systems for his ambitious Terafab semiconductor manufacturing initiative in Texas, valued between $55B and $119B
- Shares of ASML have delivered a remarkable 53% return in 2026 year-to-date, climbing 3.9% on Monday and trading within 3% of record highs
- Bank of America maintained its Buy recommendation with a $2,268 price objective, forecasting revenues could hit €73 billion by decade’s end — significantly exceeding ASML’s official €44B–€60B projection
- BofA analysts anticipate gross profit margins potentially surpassing 60%, EBIT margins reaching 50%, and earnings per share climbing above €90 by 2030
Elon Musk will participate in ASML’s exclusive technology conference scheduled for Thursday in the Netherlands, occurring one day prior to SpaceX’s anticipated public market debut. The invitation was initially disclosed by Bloomberg.
In a Saturday X post, Musk declared: “ASML should be treasured. It is arguably the greatest company in Europe.” The statement came with some context behind it.
The billionaire entrepreneur is developing Terafab — an ambitious fully-integrated semiconductor production and computing facility in Texas supported by Tesla, SpaceX, and xAI. Financial projections for the project span from $55 billion to $119 billion. ASML’s EUV systems are essential for Terafab’s success, and the Dutch company maintains an exclusive position as the sole manufacturer of these machines.
EUV lithography represents the cutting-edge technology for etching circuit patterns onto advanced semiconductor chips at the smallest manufacturing nodes. The surge in AI infrastructure investment has created fierce competition for these systems, resulting in extended delivery schedules and constrained availability.
During Thursday’s gathering, Musk will participate in a moderated discussion with ASML’s Chief Executive Christophe Fouquet, exploring topics including artificial intelligence, automation, aerospace, and semiconductor production.
The speaking engagement has generated some controversy. Reports indicate certain ASML staff members have expressed significant objections, referencing Musk’s political positions and controversial public commentary.
ASML stock closed Monday’s session at $1,734.19, representing a 3.9% daily advance. Shares now trade merely 3% beneath the all-time peak established in the previous week.
For the year-to-date period, the equity has climbed 53%, positioning it among Europe’s top-performing stocks within the AI infrastructure sector.
BofA Maintains Bullish Stance, Projects €73B Revenue Potential
Bank of America Securities reaffirmed its Buy recommendation on ASML Monday while maintaining the $2,268 price objective.
Analysts noted ASML’s official 2030 forecast calls for revenue between €44B and €60B, gross margins spanning 56% to 60%, and operating expenditures ranging from €7.7B to €8.5B. BofA believes the company can surpass the upper boundary.
The firm’s optimistic scenario envisions ASML achieving €73 billion in 2030 sales. Under this projection, increased production volume would better leverage fixed expenses — estimated to constitute approximately 20% of total cost of goods sold.
This dynamic would elevate gross margins beyond 60%, drive EBIT margins to 50%, and propel earnings per share above €90 by approximately 2030. ASML currently reports a trailing twelve-month gross margin of 52.6%.
The stock currently commands a P/E ratio of 58.31. InvestingPro identifies the current valuation as elevated relative to historical norms.
Morgan Stanley Upgrade and Share Repurchase Program
Morgan Stanley recently increased its price target on ASML to €1,660, highlighting robust demand for EUV equipment.
ASML continues executing its share buyback initiative, recently repurchasing 60,388 shares for roughly €79.4 million under its ongoing capital allocation program.
Nikon has attempted to establish itself as a more economical option in semiconductor lithography equipment, seeking to capture market share — however, it does not compete in the EUV segment where ASML maintains complete market dominance.
ASML’s 52-week peak sits at $1,831.11. Shares concluded Monday’s trading at $1,734.19.
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