This article first appeared on GuruFocus.
ASML Holding (NASDAQ:ASML), the Dutch powerhouse controlling the world’s most advanced chipmaking machines, ticked approximately 0.15% higher to $1,754.36 Thursday afternoon as TSMC’s projected 2027 capital spending surged as high as $85 billion. The message is simple: more chip factories mean more ASML machines. And when the AI arms race accelerates, ASML sells the picks and shovels nobody can replace.
The financial engine is already roaring. ASML’s second-quarter sales reached 9.3 billion, gross margin hit 54% and net income landed at 2.9 billion. Management raised its 2026 revenue forecast to 43 billion45 billion, expects third-quarter sales of 11 billion12 billion and plans to expand 2027 capacity for low-NA EUV and immersion systems by roughly 30%. That is not defensive planning. ASML is gearing up for another wave of monster semiconductor spending.
ASML Gains as TSMC’s Spending Forecast Hits $85 Billion ยท us.finance.gurufocus
But the stock is no bargain. At $1,754.36, ASML trades 42.45% above its GF Value estimate of roughly $1,230, showing that investors already expect years of AI-fueled growth. The bull case remains brutally attractive: TSMC, Samsung, Intel and SK Hynix spend billions building fabs, while ASML collects money from the machines, upgrades and servicing. The danger is timing. Customers can delay deliveries when budgets tighten, sending orders swinging hard. Right now, however, TSMC’s enormous spending ambitions say the AI equipment boom still has serious firepower.