ASML Stock: Soars Past $500 Billion Market Cap on TSMC’s Earnings Beat

TLDR

• ASML reached $500 billion market cap after jumping 7% on Thursday
• TSMC’s 35% profit surge to $16.3 billion triggered the semiconductor rally
• RBC Capital set $1,550 price target citing AI demand and tight DRAM supply
• Stock hit record €1,167 per share, cementing Europe’s top company status
• Analysts expect continued growth through 2027 on EUV lithography demand

ASML shares exploded higher on Thursday, crossing the $500 billion market cap threshold for the first time. The Dutch chip equipment maker saw shares climb over 7% to a record €1,167.

ASML Holding N.V., ASML

The catalyst? TSMC delivered earnings that crushed expectations.

Taiwan Semiconductor reported net income of $16.3 billion, jumping 35% from the prior year. The results came in above what analysts had predicted, and the company’s outlook looked solid.

The two companies work hand in hand. TSMC buys ASML’s advanced photolithography machines to manufacture cutting-edge chips. When one wins, the other typically benefits.

ASML’s market value hit approximately 443 billion euros, or $515 billion, during morning trading. This keeps the company firmly planted as Europe’s most valuable public company.

The semiconductor rally spread across European chip stocks. ASML wasn’t alone in posting gains after TSMC’s report dropped.

Wall Street Weighs In

RBC Capital made waves a day earlier by launching coverage on ASML. The firm slapped an Outperform rating on the stock with a $1,550 price target.

That target sits well above where ASML currently trades around $1,264. RBC sees room to run.

The analysts pointed to improving spending on wafer fab equipment. They also highlighted growth in extreme ultraviolet lithography technology, which ASML dominates.

RBC expects these tailwinds to push through 2026 and into 2027. Generative AI applications are driving demand higher.

DRAM supply remains incredibly tight. EUV intensity keeps climbing across chip production. Samsung’s potential comeback in HBM4 memory could provide another boost.

GenAI accelerators are shifting to more advanced manufacturing nodes. Competition among foundries is heating back up.

The Numbers Behind the Rally

ASML has crushed it over the past year. The stock delivered a 73.91% total return. Over six months, shares gained 58.02%.

The company currently trades at a P/E ratio of 44.75. Analyst price targets span from $843.92 to $1,520.48, showing a wide range of opinions.

RBC noted something interesting about valuation. ASML’s premium compared to U.S. chip equipment peers has shrunk. The firm sees this as a buying opportunity.

China risks appear baked into the current price already. ASML’s services division should keep growing at double-digit rates.

The company sits at the heart of global chip manufacturing. Its EUV machines are required for producing the most advanced semiconductors. No one else makes comparable equipment.

ASML outperformed the SOX semiconductor index throughout 2025. The stock kept climbing while other chip names struggled at times.

TSMC’s forward guidance gave investors confidence about future quarters. That optimism clearly spilled over into ASML trading.

The stock hit its all-time high during Thursday’s session before settling slightly lower. Still, shares remained up around 5% by mid-morning as trading continued across European markets.

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