Semiconductor stocks have been some of the strongest performers in 2026. The vast majority of that performance has come in the month of April. As geopolitical tensions ease (or at least potentially move into the rearview mirror), investors are once again focused on the growing demand for artificial intelligence and the chips that power the technology.
One company that’s benefited greatly from the increased demand for semiconductors of all types is ASML Holding (NASDAQ: ASML), the Dutch company that makes key manufacturing equipment. Its most recent earnings report shows soaring demand for its products, and that’s backed by recent developments among the world’s largest semiconductor manufacturers.
Despite the stock already climbing 36% in 2026, as of this writing, it’s not too late to buy.
It’s seeing booming demand from across the industry.
Semiconductor stocks have been some of the strongest performers in 2026. The vast majority of that performance has come in the month of April. As geopolitical tensions ease (or at least potentially move into the rearview mirror), investors are once again focused on the growing demand for artificial intelligence and the chips that power the technology.
One company that’s benefited greatly from the increased demand for semiconductors of all types is ASML Holding (ASML 2.02%), the Dutch company that makes key manufacturing equipment. Its most recent earnings report shows soaring demand for its products, and that’s backed by recent developments among the world’s largest semiconductor manufacturers.
Despite the stock already climbing 36% in 2026, as of this writing, it’s not too late to buy.
Image source: Getty Images.
Demand is soaring
ASML is the leading manufacturer of lithography machines used to print circuit patterns onto silicon wafers to create microchips. Its machines are used for the most advanced manufacturing processes used in AI accelerator chips and graphics processing units (GPUs), as well as less complex chips like memory. Both have seen surging demand.
First-quarter results show just how strong demand has been. ASML’s revenue exceeded management’s outlook, climbing 13% year over year. What’s more, management increased its full-year outlook for 2026, indicating revenue acceleration through the rest of the year. The midpoint of its guidance calls for 16% growth for the full year.
Those expectations are backed up by recent developments at key semiconductor manufacturers. Memory chipmakers SK Hynix and Samsung Electronics placed orders for ASML’s extreme ultraviolet machines worth approximately $8 billion each in the past month. Samsung also ordered 50 lithography machines that use older ASML technology, representing billions more in revenue. Micron Technology is likely placing large orders as well, with plans to expand its capital expenditures to $25 billion this year.
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Indeed, ASML’s memory chip-related revenue soared to 3.2 billion euros last quarter, up 32% year over year and notably exceeding its logic chip equipment sales. But that doesn’t mean its logic chip business is struggling. Taiwan Semiconductor Manufacturing indicated plans to spend closer to the high end of its $52 billion to $56 billion 2026 capital expenditure guidance this year. That would represent a 37% year-over-year increase. Additionally, Intel could increase purchase orders, especially with plans to partner with Tesla and SpaceX for its Terafab project, which set aside $20 billion for its initial facility.
All of these developments point to very strong long-term growth for ASML. Management targeted 44 billion euros to 60 billion euros in revenue by 2030 at its last investor day in 2024, but a lot has changed since then. It looks increasingly likely that it’ll reach the high end of that guidance, perhaps exceeding it, based on the growing demand for both logic and memory chips.
The stock may seem expensive at 38 times forward earnings expectations, but with a virtual monopoly on a key component of a growing market, ASML should deliver substantial earnings growth through the end of the decade.
