ASML Holding N.V.

(NASDAQ Global Select)
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Very Bullish +85

This Semiconductor Stock Is Up 36% in 2026, and It's Not Too Late to Buy Right Now

AI-generated analysis

πŸ“ˆ ASML Holding (NASDAQ: ASML) stock is up 36% year-to-date as of April 2026, with investors urged it remains buyable now.

πŸ€– Strong geopolitical easing has renewed investor focus on AI chip demand and the manufacturing equipment required to build them.

βš™οΈ ASML supplies critical lithography machines needed to print circuit patterns for advanced AI accelerators, GPUs, and memory chips.

πŸ“Š First-quarter revenue exceeded management expectations with a 13% year-over-year increase, prompting a revised full-year growth guidance of 16%.

πŸ’° Major memory chipmakers SK Hynix and Samsung Electronics placed $8 billion orders each for ASML's extreme ultraviolet machines in the past month.

πŸ’» Micron Technology plans to expand capital expenditures to $25 billion this year, likely resulting in large new ASML equipment orders.

🏭 Taiwan Semiconductor Manufacturing aims to spend near the high end of its $52-$56 billion 2026 capex guidance, representing a 37% increase.

πŸš€ Intel may increase purchase orders as it partners with Tesla and SpaceX for its Terafab project, which has set aside $20 billion for its facility.

πŸ’Ύ ASML's memory chip revenue soared to €3.2 billion last quarter, up 32% year-over-year, now exceeding logic chip equipment sales.

πŸ“… Management had previously targeted €44-60 billion in revenue by 2030, but current demand suggests the high end of that guidance may be exceeded.

πŸ’Ή The stock currently trades at 38 times forward earnings, which some view as expensive despite the virtual monopoly on critical semiconductor components.

πŸ† ASML possesses a near-monopoly position on lithography machines essential for producing both logic and memory chips used in growing markets.

πŸ“‰ Despite strong performance, ASML was not included in The Motley Fool Stock Advisor's list of 10 best stocks for investors to buy now.

πŸ’Ό Disclosure: Adam Levy has positions in Taiwan Semiconductor Manufacturing, and The Motley Fool holds positions in ASML, Intel, Micron, TSMC, and Tesla.

Bullish Signals
  • ASML's first-quarter revenue exceeded management's outlook with 13% year-over-year growth, indicating strong market demand.
  • Management increased its full-year guidance for 2026, projecting a midpoint of 16% revenue growth, signaling confidence in continued expansion.
  • Major semiconductor manufacturers SK Hynix and Samsung Electronics placed orders worth approximately $8 billion each for ASML's extreme ultraviolet machines, highlighting robust order book strength.
  • Memory chip-related revenue soared to 3.2 billion euros last quarter, up 32% year over year, demonstrating diversified demand across both memory and logic chip segments.
  • TSMC plans to spend closer to the high end of its $52 billion to $56 billion 2026 capital expenditure guidance, representing a 37% year-over-year increase in manufacturing investments.
  • Intel's potential partnership with Tesla and SpaceX for its Terafab project, with $20 billion set aside for its initial facility, could lead to increased purchase orders from ASML.
  • ASML has established itself as a leading manufacturer of lithography machines essential for advanced AI accelerator chips and GPUs, capturing surging demand in both complex and standard chip markets.
  • Management targeted 44 billion euros to 60 billion euros in revenue by 2030, but current developments suggest the high end of this guidance may be exceeded.
  • Despite rising geopolitical tensions easing, investors are increasingly focused on growing AI demand, positioning ASML as a critical beneficiary in this expanding sector.
Risk Factors
  • The article mentions that the stock already climbed 36% in 2026, indicating significant recent price appreciation.
  • The stock is currently priced at 38 times forward earnings expectations, which may be considered expensive by some investors.
Full Analysis
ASML Holding (NASDAQ: ASML) has gained 36% in 2026 as the company benefits from surging demand for semiconductors driven by artificial intelligence applications and easing geopolitical tensions. The Dutch manufacturer produces lithography machines essential for printing circuit patterns onto silicon wafers, a critical step in creating advanced AI accelerator chips, GPUs, and memory devices. Recent first-quarter results show revenue exceeding management's outlook with a 13% year-over-year increase, prompting the company to raise its full-year 2026 revenue growth midpoint guidance to 16%. Major semiconductor manufacturers have placed substantial orders reinforcing this optimistic outlook for ASML. In particular, memory chipmakers SK Hynix and Samsung Electronics ordered extreme ultraviolet lithography machines worth approximately $8 billion each over the past month, while Samsung also ordered 50 additional lithography machines using older technology, representing billions more in revenue. Micron Technology is likely placing large orders as it plans to expand its capital expenditures to $25 billion this year. Additionally, Taiwan Semiconductor Manufacturing Co. has indicated plans to spend closer to the high end of its $52 billion to $56 billion 2026 capital expenditure guidance, representing a 37% year-over-year increase in spending. Looking forward to long-term growth, ASML's management had previously targeted revenue between 44 billion euros and 60 billion euros by 2030 at its 2024 investor day. Analysts suggest the company is likely to reach the high end of that guidance or potentially exceed it due to growing demand for both logic and memory chips, though the stock currently trades at 38 times forward earnings expectations. The article notes that ASML holds a virtual monopoly on the key manufacturing equipment component required for a growing market, which should enable substantial earnings growth through the end of the decade despite the stock's recent rise. The coverage concludes by referencing The Motley Fool Stock Advisor's list of top 10 stocks, noting that ASML was not included in their current recommendations despite the company having positions in ASML and recommending it as part of a broader portfolio including Intel, Micron Technology, Taiwan Semiconductor Manufacturing, and Tesla. Historical examples of previous Stock Advisor picks like Netflix and Nvidia highlight potential for monster returns, with total average return figures cited as 983% compared to 200% for the S&P 500 as of April 27, 2026.