Shares of ASML pushed the company’s market capitalisation past $500 billion for the first time on Thursday, after key customer TSMC announced a much larger-than-expected increase in capital spending to meet surging demand for AI chips.
TSMC said it plans to spend between $52 billion and $56 billion in 2026, well above analysts’ expectations of about $46 billion. The higher budget implies significantly more spending on advanced chipmaking tools, benefiting ASML, the world’s only supplier of extreme ultraviolet (EUV) lithography machines.
ASML shares rose 5.4% by mid-day trading, extending their January gains to around 24% and cementing the company’s position as Europe’s most valuable listed firm. Analysts say ASML stands out as a major winner from the AI investment cycle, alongside memory chipmakers such as Samsung Electronics and SK Hynix.
TSMC’s stepped-up investment also reflects strong demand from clients including Nvidia and Apple. While ASML has forecast only modest growth for 2026 due to the slow pace of new fab construction, analysts say TSMC’s plans improve visibility for stronger growth into 2027 and beyond.