ASML continues to reach new heights as the AI boom continues, with the chip company performing well in the European market on account of demand for AI computer chips.
The Dutch company saw its shares surge by 60% this year which has led to a near-US$700 billion valuation. As a result of such positive performance, analysts and investors are now considering if ASML could become Europe’s first ever trillion-dollar firm.
It means that, as AI continues to explode in demand across Europe, ASML has pulled away from competitors to become the region’s most valuable listed firm.
Already, ASML is one of the most dominant global suppliers of photolithography systems – the machines used to print microchips. The equipment it develops acts as a foundation for producing some of the most advanced semiconductors worldwide, enabling ASML to match the likes of Nvidia and Google.
The company shows no signs of slowing, having recently announced plans to expand capacity in 2027 and 2028, driven by continued demand. The company is also increasing production by 30% for 2027 and eyeing up another 30% for 2028.
Q2 2026 results were very positive, Christophe Fouquet, CEO at ASML, emphasised on LinkedIn last week, as net sales came in at €9.3 billion (US$10.63 billion) and gross margin was 54%.
“The semiconductor industry’s growth outlook continues to strengthen, driven by ongoing AI-related investments and continued progress in AI technologies,” Fouquet added. “Together, these developments are driving demand for advanced Logic and Memory chips.”
He added: “Our customers, in turn, continue to accelerate their capacity expansion plans. This is translating into customer commitments across our product portfolio. As a result, our order intake remained extremely strong in the first half of the year.”
Based on this momentum, ASML has raised its outlook for the full year 2026 and now expects total net sales for the year to sit somewhere between €43 billion ($49.15 billion) and €45 billion ($51.4 billion), with a gross margin between 54% and 56%.
“I am proud of what our teams have achieved in the first half of the year and of their strong focus on execution,” Fouquet said. “I also want to thank our customers and many partners for their trust and collaboration, which continue to help us push technology forward together.”
This year, eager to keep advancing its efforts, ASML also entered several successful partnerships further afield – including with Tata Electronics to advance the semiconductor manufacturing ecosystem in India, building India’s first 300 mm fab.
The collaboration came as the Netherlands and India sought to expand their collaboration efforts and will see a new facility manufacturing semiconductors for a variety of applications across automotive, mobile devices, AI and other critical segments to serve customers worldwide.
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