Key Points
Nvidia CEO Jensen Huang announced at GTC 2026 on March 16 that AI chip orders could reach at least $1 trillion through 2027, significantly up from earlier forecasts of $500 billion. Broadcom CEO Hock Tan also forecasted $100 billion in revenue from AI chips in fiscal 2027. In the midst of this surge, ASML, the leading semiconductor equipment manufacturer, is positioned to benefit from rising demand for extreme ultraviolet (EUV) systems needed for advanced AI chip production.
ASML currently has a market capitalization of $540 billion and aims to become the first European company to reach $1 trillion. The company’s valuation is elevated, with a price-to-earnings (P/E) ratio of 49.3, increasing pressure on its earnings growth to justify the high valuation. As the company ramps up delivery of its next-generation EUV machines, demand is expected to continue its upward trajectory, supported by a recurring revenue stream from servicing existing machinery.
