Chip stocks: ASML's performance and analyst views

What happened: ASML, a leading semiconductor equipment manufacturer, reported Q2 results that surpassed expectations on July 22, 2026. Revenue reached €9.33 billion, up 40% year-over-year. The company raised its 2026 revenue outlook to €37.5-€38.5 billion. Analysts have increased earnings growth expectations, with BofA raising its price target to $2,345. Elon Musk praised ASML as "arguably the greatest company in Europe." Meanwhile, Oracle's plans to build AI data centers boosted ASML's stock due to its role in manufacturing AI chips.

Market impact: The bullish sentiment around ASML has driven its stock price to fresh 52-week highs. The semiconductor industry, particularly chip manufacturing equipment, has benefited from increased demand and investment in AI and advanced chips. ASML's strong performance has also led analysts to predict it could join the $1 trillion market cap club by 2028.

What to watch next: ASML's Q3 earnings report on October 25, 2026, will provide further insight into the company's performance and guidance. Additionally, any updates on ASML's technology roadmap, particularly its EUV and high-NA systems, will be crucial as they drive demand for its products. Lastly, geopolitical developments and semiconductor industry trends will influence ASML's growth trajectory.