ASML Investors Start Looking Into 2026; Our Fair Value Estimate Is EUR 850

We believe ASML will remain the top lithography equipment provider in semiconductor foundries for at least the next two decades. Taiwan Semiconductor Manufacturing, Intel, and Samsung redesigned their fabs a decade ago to make them suitable for extreme ultraviolet, or EUV, lithography, a costly and long endeavor, so it is quite unlikely ASML will be displaced from its place in the foundry. In addition, no competitor has yet matched ASML’s technological leadership. The company’s competitive advantage will likely keep expanding as it increases its already-high EUR 4 billion research and development budget.