Key Highlights
- ASML shares climbed 4% to $1,803.23 following Bernstein’s reaffirmed Buy rating and upgraded WFE spending outlook to $148B in 2026
- Bernstein forecasts WFE spending escalating to $259B by 2028, marking approximately 75% growth over a two-year period
- Intel expanded its equity offering to $20B from $15B, indicating substantial upcoming capital investment in semiconductor manufacturing equipment
- Goldman Sachs recently placed ASML on its European Conviction List, reinforcing positive analyst momentum
- The company’s EUV machine order backlog now extends through 2028, with plans to boost capacity 30% in 2027
Shares of ASML surged 4% to $1,803.23 during Tuesday morning’s session, significantly outpacing the broader market which remained relatively unchanged, as multiple analyst endorsements combined with Intel’s enlarged funding initiative drove investor interest toward semiconductor equipment manufacturers.
The momentum began ahead of market opening. Bernstein maintained its Buy recommendation on ASML while issuing substantially elevated projections for worldwide wafer fabrication equipment (WFE) expenditure. The investment firm now anticipates approximately $148 billion in WFE spending during 2026, advancing to $204 billion in 2027 and reaching $259 billion by 2028.
This trajectory would deliver approximately 75% expansion across a two-year timeframe. For a corporation maintaining virtual monopoly status in extreme ultraviolet lithography technology, such forecasts carry substantial weight.
ASML concluded U.S. market activity higher by 3.8% at $1,799.38.
Wall Street confidence has been accumulating steadily. The previous day, analyst Scemama maintained a Buy stance with an unmodified €2,452 target price, emphasizing ASML’s lithography market dominance and its productivity enhancement timeline. Goldman Sachs had previously elevated the stock to its European Conviction List earlier this month.
Such concentrated positive coverage from several prominent financial institutions typically generates significant investor response.
Intel’s Expanded $20B Capital Raise Signals Major Investment Cycle
The complementary development came from Intel. On Monday evening, Intel announced it was enlarging its equity offering to $20 billion, exceeding its initial $15 billion proposal. The company is distributing 210.5 million shares priced at $95 per share.
Intel shares declined 4.1% following Monday’s offering announcement, before recovering to close higher by 0.2% at $97.71 on Tuesday. The equity has advanced 165% year-to-date and surged 348% throughout the past twelve months, positioning Intel to capitalize on its elevated valuation.
Market participants interpreted this action as indication that Intel is preparing for substantial capital outlays. During its latest quarterly report, the company elevated its 2026 capital expenditure projection above $20 billion, increasing from approximately $18 billion, attributing the change to accelerating product demand.
Implications for Equipment Manufacturers
KeyBanc analyst Matt Bryson stated the capital raise enables Intel to finance expansion addressing current CPU needs along with emerging custom ASIC, foundry, and packaging requirements. While acknowledging the dilutive impact on current shareholders, he emphasized the positive demand indicator for Intel, industry competitors, and capital equipment vendors.
ASML emerges as the primary beneficiary considering its exclusive position as the singular EUV equipment provider. The company’s order pipeline for these systems currently extends through 2028. Management has additionally announced intentions to increase Low-NA EUV and DUV immersion production capacity by 30% during 2027.
Related equipment manufacturers participated in the rally. Lam Research advanced 1.64%, KLA Corp increased 4.01%, and Applied Materials gained 0.67% during Tuesday’s trading.
Intel’s free cash flow is projected to register modestly negative for the current year, following cumulative negative $44 billion between 2022 and 2025, per FactSet data.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
