Analysis-Is chip giant ASML about to hit a ceiling, or break through it?
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ASML's latest results reignited the rally that has made it Europe's most valuable company, until questions about its capacity to meet record orders sent the stock sliding - highlighting just how stretched expectations have become. The whipsaw trading underscores how the firm, whose tools are used by chipmakers such as Taiwan's TSMC to produce AI chips for Nvidia, is testing the limits of investor appetite. ASML shares are up 34% so far this month and trade at 42 times 2026 earnings estimates, well above Nvidia's 25 times, as analysts have ratcheted up forecasts.
📄 Summary
ASML's latest results reignited the rally that has made it Europe's most valuable company, until questions about its capacity to meet record orders sent the stock sliding - highlighting just how stretched expectations have become. The whipsaw trading underscores how the firm, whose tools are used by chipmakers such as Taiwan's TSMC to produce AI chips for Nvidia, is testing the limits of investor appetite. ASML shares are up 34% so far this month and trade at 42 times 2026 earnings estimates, well above Nvidia's 25 times, as analysts have ratcheted up forecasts.