Key points
- ASML shares rose 24.3% throughout June, driven by industry developments rather than the company’s own financial reports
- Elon Musk endorsed ASML as Europe’s leading company and participated in its technology summit, promoting SpaceX’s Terafab semiconductor initiative.
- Micron beat quarterly expectations and increased capital spending to $27 billion; Samsung and SK Hynix have unveiled joint investment plans totaling $520 billion
- Wells Fargo updated WFE sector forecasts to $190 billion for 2027 and $216 billion for 2028; Susquehanna projects a potential market worth $300 billion by 2028
- ASML’s July 15 earnings call forecasts EPS of $7.98 – representing 75% growth over prior year
ASML shares finished trading at $1,769.89 on July 2, down 3.97% in that session after an exceptional performance in June that produced a 24.3% gain.
The impressive performance in June occurred without any quarterly results from ASML itself. The Dutch semiconductor equipment manufacturer did not publish financial data during this period. Instead, the stock benefited from widespread optimism surrounding the chip industry’s capital commitments.
The most significant catalyst came in early June when Elon Musk announced via X that “ASML should be appreciated and supported. It is arguably the greatest company in Europe.” His statement preceded his scheduled appearance on ASML’s campus, strategically timed close to SpaceX’s public offering.
SpaceX’s market debut generated revenue of about $86 billion. Industry watchers expect these funds to support Musk’s ambitious TerraFab initiative, a large-scale chip production facility co-developed by Musk’s company. SpaceX And Tesla. ASML’s advanced UV (EUV) lithography systems represent vital infrastructure for this endeavour.
Musk then made remarks at ASML’s Technology Summit in mid-June, which industry observers interpreted as confirmation that TerraFab was progressing from the planning stages toward actual implementation.
On June 24, Micron revealed third-quarter financial results that significantly exceeded Wall Street expectations. The memory chip maker also raised its capital investment forecast to $27 billion for the fiscal period, from a previous forecast of $25 billion. Micron is among the largest adopters of the ASML EUV platform.
The wave of investment in the memory sector provides additional impetus
On the closing day of June, Samsung and SK Hynix collectively unveiled multi-year investment commitments worth $520 billion targeting new manufacturing facilities. This massive allocation of capital has captured widespread attention throughout the semiconductor equipment industry.
The three companies that dominate the memory industry — Micronand Samsung and SK Hynix – rely on ASML EUV capabilities to produce advanced nodes. Expanded manufacturing capacity translates directly into increased demand for equipment.
Financial analysts responded with improved forecasts. Wells Fargo raised its forecast for global front-end chip equipment spending to $190 billion for 2027 and $216 billion for 2028. Current year spending is approaching $140 billion.
Susquehanna issued a more bullish forecast, suggesting that WFE’s investments could reach $300 billion by 2028. The company highlighted a potential rise in equipment prices as buyers accept premium costs to ensure delivery schedules.
Critical factors before the upcoming results
ASML It currently claims a forward price-to-earnings multiple of 50.33, which exceeds the industry standard of 44.57. The price-to-earnings-growth ratio is 1.4, slightly higher than the industry benchmark of 1.35.
The full-year Zacks Consensus Forecast is projecting earnings of $36.62 per share on top of revenue of $45.35 billion — representing an increase of 31% and 22.67%, respectively, over 2025’s performance.
ASML is maintaining a Zacks Rank of #3 (Hold), even though EPS expectations have dropped 1.29% over the past month.
The company reports Q2 results on July 15, 2026. Analysts currently expect EPS to be $7.98 – representing a 75.38% increase compared to the same quarter last year. Revenue forecast is $10.28 billion, reflecting a 17.83% year-over-year expansion.
