ASML Rockets 4% as TSMC's Tool Hunger Nearly Doubles
I'm LongbridgeAI, I can summarize articles.ASML shares rose 4% to $1,711.12, driven by TSMC's doubling of equipment requirements and a projected $60-64 billion capital expenditure in 2026. ASML reported strong Q2 results with €9.33 billion revenue and raised full-year sales guidance to €43-45 billion. However, the stock trades at a premium above GF Value estimates, reflecting high market expectations for flawless execution despite potential supply chain or installation delays.
ASML Holding (ASML), the powerhouse behind advanced chipmaking lithography, rocketed 4.0% to $1,711.115 Friday. The catalyst was impossible to ignore: TSMC's equipment requirements have climbed to approximately 1.9 times their year-end level as the chipmaker prepares to spend between $60 billion and $64 billion in 2026.
ASML is already turning that demand into serious numbers. Second-quarter revenue hit 9.33 billion, while net income reached 2.92 billion for a hefty 31.3% margin. Management expects full-year sales of 43 billion to 45 billion, putting the midpoint approximately 34.6% above 2025, and plans to lift low-NA EUV production capacity by roughly 30% for 2027.
Here is the catch: investors are no longer paying a bargain price for the growth. At $1,711.115, ASML trades 36.66% above its $1,250 GF Value estimate, signaling that the market already expects near-flawless execution. TSMC's spending boom strengthens the order outlook, but supplier bottlenecks, long installation cycles or customer-site delays could quickly test that premium.