Overview
- ASML shares jumped more than 7% after TSMC’s results, reaching €1,167 and valuing the company at roughly €443 billion, which briefly made it Europe’s most valuable company.
- TSMC reported net income of $16.3 billion, up 35% year over year, lifting expectations for ASML due to their supplier–customer link in advanced photolithography.
- The stock later edged lower as analysts flagged bottlenecks across lithography supply, with limited EUV capacity and high system prices—about $150 million for standard EUV and near $380 million for High‑NA—constraining unit growth.
- RBC Capital initiated ASML at Outperform with a $1,550 target, while other firms raised targets on AI-driven wafer‑fab spending, tighter DRAM and HBM supply, and rising EUV intensity.
- TSMC is guiding up to $56 billion in 2026 capital spending focused largely on fabs and advanced packaging such as CoWoS, while High‑NA EUV ramps are expected later in 2027–2028 and investors await ASML’s Jan. 28 results for clarity on supply impacts.