(Bloomberg) -- ASML Holding NV became only the third European company to surpass $500 billion in market value after key customer Taiwan Semiconductor Manufacturing Co. gave a stronger-than-anticipated outlook for 2026.
Shares in the Dutch semiconductor equipment maker rose as much as 7.6% in Amsterdam on Thursday, hitting a record high and extending their year-to-date gain to 24%. That took ASML’s market capitalization to about €453 billion ($527 billion). Only luxury conglomerate LVMH and Danish drugmaker Novo Nordisk A/S have previously reached the milestone.
ASML surged above the symbolic level after TSMC on Thursday forecast capital spending to rise to as much as $56 billion in 2026, more than expected, showing how the chipmaker is benefiting from the artificial intelligence boom.
“The milestone means a lot for the market sentimentally,” said Barclays Plc strategist Emmanuel Cau. “Europe is a small market, so if ASML as a major stock goes up, the broader market will automatically benefit. The rally in ASML also gives European investors a gateway to play the mainstream AI trade.”
TSMC’s outlook provides fresh optimism for sustained global AI spending in 2026 after recent signs of volatility in the so-called AI trade. Hundreds of billions of dollars have been committed to build the data centers needed to train and run AI, fueling growth among companies ranging from water chiller manufacturers to chip makers.
ASML has grown to be Europe’s most valuable company as the only producer of cutting-edge lithography machines that TSMC needs to manufacture chips used in everything from Apple Inc.’s smartphones to Nvidia Corp.’s artificial intelligence accelerators.
Still, at $500 billion it’s not even close to Wall Street’s technology giants. Nvidia and Alphabet Inc. both have market values exceeding $4 trillion.
“This is ultimately a very positive start to the earnings season for the tech giants,” said Ben Barringer, head of technology research at Quilter Cheviot. “These results give us a good indication of what we are likely to see from both the chips companies and the semicap equipment providers.”
Shares in the Dutch semiconductor equipment maker rose as much as 7.6% in Amsterdam on Thursday, hitting a record high and extending their year-to-date gain to 24%. That took ASML’s market capitalization to about €453 billion ($527 billion). Only luxury conglomerate LVMH and Danish drugmaker Novo Nordisk A/S have previously reached the milestone.
ASML surged above the symbolic level after TSMC on Thursday forecast capital spending to rise to as much as $56 billion in 2026, more than expected, showing how the chipmaker is benefiting from the artificial intelligence boom.
“The milestone means a lot for the market sentimentally,” said Barclays Plc strategist Emmanuel Cau. “Europe is a small market, so if ASML as a major stock goes up, the broader market will automatically benefit. The rally in ASML also gives European investors a gateway to play the mainstream AI trade.”
TSMC’s outlook provides fresh optimism for sustained global AI spending in 2026 after recent signs of volatility in the so-called AI trade. Hundreds of billions of dollars have been committed to build the data centers needed to train and run AI, fueling growth among companies ranging from water chiller manufacturers to chip makers.
ASML has grown to be Europe’s most valuable company as the only producer of cutting-edge lithography machines that TSMC needs to manufacture chips used in everything from Apple Inc.’s smartphones to Nvidia Corp.’s artificial intelligence accelerators.
Still, at $500 billion it’s not even close to Wall Street’s technology giants. Nvidia and Alphabet Inc. both have market values exceeding $4 trillion.
“This is ultimately a very positive start to the earnings season for the tech giants,” said Ben Barringer, head of technology research at Quilter Cheviot. “These results give us a good indication of what we are likely to see from both the chips companies and the semicap equipment providers.”