AMSTERDAM, May 26, 2026, 17:18 CEST
ASML is back in focus for AI stocks after Coatue Management disclosed a $655.4 million stake in the Dutch chip-tool maker and UBS called it its favorite European semiconductor name. The latest moves add to the basic market view: Nvidia chips need the gear that ASML builds.
Micron Technology blew past the $1 trillion mark in market value on Tuesday, boosted by surging demand for memory chips in AI systems, as investors look for more names in the AI trade. That demand points to the AI rally spilling into the wider supply chain for data centers, not just the big graphics processor makers.
ASML sits near a bottle neck in chipmaking. Its lithography tools use light to print tiny circuits on silicon wafers, which is key to making advanced semiconductors. Reuters reported last week that ASML’s top-end machines are needed for AI logic chips and the memory chips used with them by customers like TSMC, Samsung Electronics, SK Hynix, Micron, and Intel.
ASML CEO Christophe Fouquet told Reuters that the chip market is likely to remain “supply-limited” for a while. “Demand on AI is coming so strongly,” Fouquet said. He added that satellites and robotics could lead to more bottlenecks, and he sees the market possibly hitting $1.5 trillion by 2030. Reuters
ASML lifted its outlook back in April. The company posted first-quarter net sales of €8.8 billion and net income at €2.8 billion, with a gross margin of 53.0%. It now sees 2026 net sales between €36 billion and €40 billion. Back then, Fouquet said chip demand was running ahead of supply, and customers were moving faster on building capacity for 2026 and later.
UBS hiked its ASML price target to €1,900 from €1,600 and bumped up earnings forecasts for 2027 and 2028 ahead of consensus. Francois-Xavier Bouvignies and his team wrote that ASML still has the “most attractive risk/reward in the sector,” despite chip-equipment stocks having had a strong run. Investing.com
UBS says the gap with U.S. rivals is part of what makes ASML interesting. The bank noted ASML has trailed Applied Materials, KLA, and Lam Research this year and that its premium has tightened against the long-term average. UBS highlighted ASML’s memory business too, estimating around 30% to 35% of its revenue could come from memory by 2026.
Coatue added a fresh ASML position, disclosing 496,234 shares worth $655.4 million as of March’s end. The same 13F showed Coatue also trimmed its Nvidia holding by 2.87 million shares. 13F filings are lagging and don’t disclose the reasons behind trades.
ASML’s U.S. shares stayed close to flat at $1,629.27 on Tuesday, with the company’s market cap holding around $641 billion. ASML remains one of Europe’s top-valued firms, though the recent strong run in the stock has pushed valuation concerns into focus.
ASML kept buying back stock. The company said Tuesday it repurchased shares over five days from May 18 to May 22, putting about €15.9 million into the market each day. The current buyback runs through 2028, with a ceiling of €12 billion. Some of those shares go to employee plans, while the rest are for cancellation.
But the trade has issues. Fouquet said stricter export curbs to China might push China to develop competing tools sooner. UBS pointed out that TSMC is taking longer to pick up High NA EUV, ASML’s upcoming platform. High NA EUV aims to print smaller chip features. UBS still sees the tech lowering costs on main chip layers and says adoption could come in two to three years.
Right now, ASML is trading more like an AI infrastructure name than a classic chip equipment stock. The question is if strong orders, export controls and High NA shipments will keep backing that up when chipmakers decide where the next batch of spending will go.
