AMSTERDAM, Jan 15 (Reuters) - ASML, the leading manufacturer of computer chip production equipment, reached a market value above $500 billion for the first time on Thursday. This milestone followed an announcement from its major customer TSMC, which revealed capital spending plans for 2026 that exceeded market forecasts.
TSMC increased its planned capital expenditure to a range of $52 billion to $56 billion in 2026. Analysts surveyed by Visible Alpha had anticipated around $46 billion. The higher spending could translate to up to 21% more funds available for purchasing chipmaking equipment.
By 1106 GMT, ASML's stock price had climbed 5.4%, contributing to a 24% gain in January alone. The company further solidified its position as Europe's most valuable publicly traded firm.
Analysts note that ASML stands to benefit significantly from the expansion in artificial intelligence chip production. Chipmakers like Samsung and SK Hynix, which produce memory chips for AI applications, have been ramping up their investments. TSMC, a key supplier for Nvidia and Apple, is now joining this trend with its increased spending plans.
"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 holds a stake in ASML.
Dieperink added that TSMC's heightened expenditure comes amid rising demand from other players like Micron and Korean memory chip manufacturers, as a bottleneck in AI memory manufacturing emerges.
ASML is scheduled to report its fourth-quarter earnings on January 28. The company has previously projected only modest growth for 2026, with sales potentially remaining flat at worst.
Analysts suggest this cautious outlook reflects the relatively slow pace of new factory construction compared to the surging demand for AI-related chips.
However, Citi analysts stated that TSMC's capital spending plans indicate a strengthening outlook for ASML into 2027 and beyond. The Taiwanese company aims to accelerate its factory building process to meet demand.