Following an optimistic 2026 performance forecast from its key client, Taiwan Semiconductor Manufacturing, shares of Dutch semiconductor equipment maker ASML Holding NV surged to a record high, propelling its market capitalization past the $500 billion milestone.
On Thursday, ASML's stock climbed as much as 7.6% during trading on the Amsterdam exchange, extending its year-to-date gain to 24%. ASML has now become the third European company to enter the $500 billion market cap club, joining luxury goods giant LVMH and Danish pharmaceutical firm Novo Nordisk.
The catalyst for ASML's breakthrough past this symbolic threshold was TSMC's announcement on Thursday that its capital expenditure budget for 2026 could reach as high as $56 billion, exceeding market expectations. This plan vividly demonstrates how the chipmaking titan is profoundly benefiting from the global artificial intelligence boom.
Barclays strategist Emmanuel Cau remarked, "From a sentiment perspective, this milestone is significant. The European market is smaller in size, so gains in a bellwether stock like ASML naturally lift the broader market. Furthermore, ASML's rally provides European investors with an entry point to participate in the mainstream AI theme."
Recent volatility had emerged among AI-themed stocks, but TSMC's outlook has injected fresh confidence into the continued global investment in artificial intelligence for 2026. The market has already committed trillions of dollars to build data centers required for training and running AI, a boom that is driving growth not only for chipmakers but also for a range of related companies, including producers of equipment like water chillers.
ASML, now Europe's most valuable company, holds a core competitive advantage: it is the world's only manufacturer capable of producing the most advanced lithography machines. This equipment is critical for TSMC to fabricate a wide array of chips, from those powering Apple's smartphones to the accelerators designed by Nvidia for AI applications.
Ben Barringer, Technology Research Lead at Quilter Cheviot Investment Management, stated, "This is a very positive start to the earnings season for the tech giants. These figures give us a clear preview of the results we can likely expect from chip companies and semiconductor equipment suppliers next."
ASML, headquartered in Veldhoven, Netherlands, is scheduled to release its full-year 2025 financial results on January 28th.