Nvidia has become the world’s most valuable company thanks to its advanced chips that power the AI revolution. But it didn’t work without it ASML.
The company, one of Europe’s most valuable Dutch semiconductor equipment companies, makes the lithography machines needed to print extremely fine patterns on silicon wafers.
The company is the only company in the world that manufactures extreme ultraviolet (EUV) lithography equipment used in the production of cutting-edge semiconductors. It holds a 90% share of the broader lithography market.
Bank of America analyst Didier Chemama predicted that Bank of America will soon have exclusive rights to next-generation EUV lithography. “ASML is industrializing next-generation EUV (extreme ultraviolet) lithography technology, which we believe will underpin many of the disruptive trends of this decade,” he said in a note Wednesday.
His memo came after ASML’s earnings report revealed that bookings for the fourth quarter of 2025 were more than double what analysts expected.
ASML stock price
It’s “virtually impossible” to catch up with ASML
Morningstar equity analyst Javier Colleonero told CNBC that lithography is “the building block of every chip,” adding that ASML machines have played a role in producing 99% of semiconductors.
But EUV is key to building AI.
ASML manufactures two types of EUV. One is the low numerical aperture used in the production of current generation AI chips such as Nvidia Blackwell, and the other is the more advanced high numerical aperture used in research and development by companies developing next-generation semiconductors.
ASML’s EXE:5000 is located at the High NA Lab in Veldhoven.
Both machines fire powerful lasers at droplets of molten tin in a vacuum, creating a plasma that emits EUV light. The light is then guided using ultra-precision mirrors, reflected off a mask containing the pattern of one layer of chips, and then downsized and projected onto a silicon wafer.
These systems are purchased by chip foundries such as Taiwan’s TSMC and contracted with chip designers such as Nvidia.
Coleonero said companies like Japan’s Nikon and Canon, which ship some lithography equipment for less advanced process nodes, are “distant competitors.”
“They are a large conglomerate and have only invested a fraction of what ASML has invested over 30 years. It is virtually impossible to catch up at this point,” he added.
Looking to the future
EUV accounted for the majority of ASML’s bookings, contributing €7.4 billion ($8.8 billion) of the total net bookings of €13.2 billion in Q4 2025. Throughout 2025, the company sold 48 EUV systems, generating revenue of 11.6 billion euros.
ASML does not disclose the prices of its machines, but analysts told CNBC that the company’s most advanced high-NA EUVs cost between 320 million euros and 400 million euros. According to Coleonero, the low NA EUV will have a selling price of around 220 million euros.
Companies such as TSMC, Intel, and Samsung are currently experimenting with high-NA EUV in laboratory environments, he added.
“Once customers become familiar with this tool, it will be gradually introduced into volume manufacturing. High NA is expected to reach volume manufacturing by 2027-2028, with Intel being the first adopter,” Correonero said.
ASML stock has increased 36% in the last year. The company has soared another 32% since January 1, becoming the third European company to reach the $5 trillion valuation level earlier this month, and has continued to rise ever since.
Analysts expect the stock to continue rising as advanced chips remain critical to the continued advancement of AI. ASML expects net sales to reach between 34 billion and 39 billion euros in 2026, exceeding the 32.7 billion euros in 2025.
