Key Takeaways
- Elon Musk declared ASML “arguably the greatest company in Europe” via X on Saturday, days before his scheduled appearance at the company’s exclusive technology conference on Thursday
- Musk requires ASML’s extreme ultra-violet (EUV) lithography equipment for his ambitious Terafab chip manufacturing initiative in Texas, valued between $55B and $119B
- Shares of ASML have delivered a 53% gain in 2026, climbing 3.9% in Monday’s session and trading within 3% of their record peak
- Bank of America maintained its Buy recommendation with a $2,268 target price, forecasting potential revenues of €73 billion by decade’s end — substantially above ASML’s official €44B–€60B projection
- BofA analysts anticipate gross profit margins could surpass 60%, with EBIT margins reaching 50% and earnings per share exceeding €90 by 2030
Elon Musk will participate in ASML’s exclusive technology conference in the Netherlands this Thursday, just one day prior to SpaceX’s anticipated public market debut. The invitation was initially disclosed by Bloomberg.
In a Saturday post on X, Musk declared: “ASML should be treasured. It is arguably the greatest company in Europe.” The statement came with clear context behind it.
Musk is currently developing Terafab — an ambitious vertically-integrated semiconductor manufacturing and computing facility in Texas supported by Tesla, SpaceX, and xAI. Financial projections for the project span from $55 billion to $119 billion. The facility’s success hinges on acquiring EUV lithography systems. ASML holds the exclusive position as the sole manufacturer of this critical technology.
EUV photolithography represents the cutting-edge method for etching circuits onto semiconductor chips at the most sophisticated manufacturing nodes. The surge in AI infrastructure development has created fierce competition for these systems, resulting in extended delivery schedules and constrained availability.
During Thursday’s gathering, Musk will participate in a fireside discussion with ASML’s CEO Christophe Fouquet, exploring topics including artificial intelligence, robotics, space exploration, and semiconductor production.
The speaking engagement has generated some controversy. Reports indicate certain ASML staff members have expressed significant concerns about the invitation, pointing to Musk’s political positions and controversial public commentary.
ASML stock closed Monday at $1,734.19, posting a 3.9% gain for the session. Shares are trading merely 3% beneath the record high established last week.
Since the beginning of 2026, the stock has climbed 53%, establishing it as among Europe’s top-performing equities in the AI infrastructure sector.
Bank of America Maintains Buy Rating, Projects €73B Revenue Potential
Bank of America Securities reaffirmed its Buy stance on ASML Monday while maintaining its $2,268 price objective.
Analysts noted that ASML’s official projections for 2030 call for revenue between €44B and €60B, gross margins of 56%–60%, and operating costs of €7.7B–€8.5B. BofA believes the company can surpass the upper boundary of these estimates.
The firm’s optimistic scenario envisions ASML generating €73 billion in revenue by 2030. Under this forecast, increased production volumes would better distribute fixed costs — which analysts estimate comprise approximately 20% of total cost of goods sold.
This operational leverage would drive gross margins beyond 60%, push EBIT margins to 50%, and lift earnings per share above €90 by approximately 2030. ASML currently reports a gross margin of 52.6% over the trailing twelve months.
The stock currently carries a P/E ratio of 58.31. InvestingPro indicates the valuation appears elevated at present price levels.
Morgan Stanley Outlook and Share Repurchase Program
Morgan Stanley recently increased its ASML price target to €1,660, pointing to robust demand for EUV lithography tools.
ASML has maintained an active share repurchase program, buying back 60,388 shares for roughly €79.4 million as part of its ongoing capital allocation strategy.
Nikon has attempted to establish itself as a more economical option in semiconductor lithography equipment, seeking to capture market share — although it does not compete in the EUV segment where ASML maintains complete market dominance.
ASML’s 52-week peak sits at $1,831.11. Shares closed at $1,734.19 in Monday’s trading session.
