ASML, the world’s biggest maker of chip manufacturing equipment crossed $500 billion in market value for the first time on Thursday, after customer TSMC announced larger than expected capital spending plans to keep up with booming demand for artificial intelligence chips.
TSMC increased its capital spending of between $52 billion and $56 billion in 2026, blowing past market expectations of $46 billion according to analysts polled by Visible Alpha. This means up to 21% more money for chipmaking equipment.
The news pushed ASML’s shares 5.4% higher by 1106 GMT, totalling a rise of 24% in January alone, as it extends its lead as Europe’s most valuable company.
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Analysts have identified ASML as a “clear beneficiary” of the AI boom, according to Reuters. This has led to expansion plans by many chipmakers, including Samsung, SK Hynix, and now TSMC, which is the main manufacturer of chips for Nvidia and Apple.
“The market has underestimated again how large is the demand for AI, and the implementation is going faster than everybody expected,” said Han Dieperink, chief investment officer at investment firm Aureus which has a stake in ASML.
Dieperink also said that heightened spending from TSMC comes on top of increased demand seen from Micron and Korean memory chip manufacturers, as a manufacturing bottleneck for AI memory forms.
ASML, which is due to report fourth-quarter earnings on January 28, has so far forecast only tepid growth for 2026 or flat sales at worst. Analysts said that this reflects the relatively slow rate at which new plants are being built, compared to the massive demand for AI.
READ: TSMC raises revenue forecast on strong AI demand (
According to Citi analysts, TSMC’s capital spending plans mean ASML’s outlook into 2027 and beyond is strengthening. Meanwhile, the Taiwanese group plans to hasten its factory building process.
TSMC recently reported record earnings, causing AI chip stocks to see a rise, according to CNBC. ASML popped as much as 7% in early dealmaking, sending it to record highs, as investors responded to stronger-than-expected earnings from Taiwan’s TSMC. It was last seen up 4.54%.
TSMC reported a 35% increase in fourth-quarter profit, beating estimates and hitting a fresh record as demand for artificial intelligence chips remained strong.
Last year, ASML emerged as the top shareholder for Mistral AI, the French company behind AI assistant Le Chat, and several foundational models, and OpenAI’s biggest competitor from Europe.