Can Rising AI Demand Drive Growth for ASML's Advanced Technologies?

ASML Holding N.V. ASML plays a key role in the artificial intelligence (AI) ecosystem by providing advanced semiconductor manufacturing equipment needed to produce the chips that power modern AI applications. Its technology supports the production of powerful processors used across data centers and other computing environments.

ASML specializes in lithography systems, which are essential for manufacturing sophisticated microchips. Its extreme ultraviolet (EUV) technology enables chipmakers to create some of the most advanced semiconductor features used in advanced computing and AI. The company’s latest EUV developments are designed to support the production of next-generation chips with greater precision and efficiency.

The company is also incorporating AI into its own operations and technology to improve lithography precision, accelerate research and development, enhance defect detection and support smarter diagnostics. In addition, ASML’s expanded collaboration with Samsung on High-NA EUV technology highlights its efforts to advance semiconductor manufacturing for the AI era.

According to Grand View Research, the global AI market is projected to reach $3,497.3 billion by 2033, witnessing a CAGR of 30.6% from 2026 to 2033. The rapid expansion of the sector is expected to drive investment throughout the semiconductor supply chain, creating opportunities for ASML as a supplier of critical manufacturing technologies.

How Are Other Semiconductor Companies Advancing in AI?

ASML faces competition from Advanced Energy Industries, Inc. AEIS and Applied Materials, Inc. AMAT. Advanced Energy Industries is expanding its AI exposure by developing power solutions that help data centers manage growing electricity requirements. Its technologies focus on improving power efficiency and reliability as AI workloads become more energy-intensive. Advanced Energy Industries is introducing new products to address the evolving power needs of AI infrastructure.

Applied Materials is supporting AI growth through semiconductor equipment used to manufacture advanced chips and memory. Its work in packaging, deposition and materials engineering helps chipmakers improve chip performance and computing capabilities. Applied Materials is collaborating with industry partners to develop technologies for next-generation semiconductor and memory applications.

ASML’s Price Performance, Valuation & Estimates

ASML shares have rallied 85.6% over the past year compared with the industry’s growth of 84.5%.

From a valuation standpoint, ASML trades at a forward price-to-sales ratio of 12.36, above the industry tally of 11.46.

Earnings estimates for 2026 have decreased 2.1% to $43.86 over the past 60 days, while the same for 2027 have decreased 1.4% to $58.27.

ASML currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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ASML Holding N.V. (ASML): Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).