Key Takeaways
- ASML’s share price has soared 120% over the last 12 months on booming AI demand.
- The Dutch lithography equipment maker plays an essential role in the semiconductor supply chain.
- ASML is trading around EUR 1,400 a share, 19% above Morningstar’s fair value estimate.
As the AI rally continues apace, shares of Dutch semiconductor equipment giant ASML ASML are riding the wave. ASML’s share price has climbed more than 50% so far this year, as the AI boom bolsters demand for advanced chips and puts AI ‘picks-and-shovels’ plays at center stage.
ASML produces lithography machines essential for advanced semiconductors. It boasts a sticky and valuable customer base, from TSMC to Samsung and Micron, whose chips in turn are driving the AI revolution. So what is causing the latest boost to ASML’s share price?
Why Is ASML’s Stock Rallying?
ASML’s first quarter 2026 results exceeded analyst expectations amid swelling global demand and ongoing shortages of memory chips.
Net sales rose 13%. Operating profit increased 15%. Gross margin was 53%. And the company hiked its net sales forecast for the year to EUR 36-40 billion. Morningstar senior equity analyst Javier Correonero says he now sees the company hitting EUR 60 billion in revenue by 2030.
Yet, headwinds may lie ahead as a possible new US law threatens to cut off sales of its lower-end chipmaking equipment to China. So, is now the time to buy ASML?
Are ASML Shares a Buy in 2026?
ASML’s stock is currently trading at around EUR 1,400 a share, an all-time high for the more than 40-year-old company. With shares having soared 120% over the last 12 months, its market cap now stands close to EUR 550 billion, making ASML Europe’s most valuable company.
According to Morningstar analysis, the stock is trading at a 19% premium to its fair value estimate. And while its competitive moat is considered wide, the high cost of its machinery leaves it vulnerable to a spending downturn.
Still, with many tech firms having designed their semiconductor foundries around ASML’s leading technology, Morningstar’s Correonero says the Dutch giant looks poised to remain the top lithography equipment provider for at least the next two decades.
For now, the stock looks set to follow the fortunes of the AI boom.
