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Shares of ASML Holdings (NASDAQ:ASML) hit an all-time high of over $1000 and €1000 across both the exchanges where it trades, seemingly benefiting from optimism around its key customer, Taiwan Semiconductor (NYSE:TSM).
The semiconductor equipment maker’s shares are up around 7% in trading so far on Nasdaq and about 4% in Amsterdam.
Earlier today, Reuters reported ASML’s (ASML) CEO Christophe Fouquet’s statement that chip buyers, including Germany’s car industry, need older-generation computer chips, which Chinese chip manufacturers are currently investing in.
Amid U.S.-led export curbs on advanced technology, Chinese companies are boosting their capacity to make these older chips, raising the West’s concerns about the long-term potential for oversupply.
Demand for these non-AI and AI-powered chips is driving bullish sentiment around semiconductor names, including ASML’s (ASML) top customer TSMC (TSM). Morgan Stanley set out positive expectations for TSMC’s upcoming Q2 earnings on the back of strong demand, as did JP Morgan.
MS analysts expected raised Q3 guidance and updated full-year expectations to close out the latest financial results. JPM also expects TSMC (TSM) to top guidance in its latest quarter on the back of high-end phone & adv nodes and rising data center AI revenue.
TSMC (TSM) will report its Q2 earnings on July 17. ASML (ASML) is poised to benefit from the ongoing AI boom as it holds a monopoly over EUV lithography tech, valuable for chip manufacturing, according to an SA analysis.