ASML’s €80 Million Weekly Buyback Adds Fuel to Musk-Driven Rally

ASML spends €80M in a week on share buybacks; Elon Musk's Terafab project sparks rally to new highs despite internal staff opposition.

ASML has been hoovering up its own shares at a furious pace, spending nearly €80 million in a single week to repurchase stock while the price hovers near record levels. The buyback activity – 55,118 shares at an average price of roughly €1,440 each between 1 and 5 June – underscores management’s conviction in the company’s outlook. And that conviction is being matched by the market: the shares hit a fresh 52-week high of €1,532.60 on Monday, gaining almost 6% to close at €1,510.80.

The immediate catalyst for Monday’s surge was an appearance by Elon Musk at an internal ASML technology conference. The Tesla and SpaceX chief is set to speak on Tuesday about Project Terafab, a colossal chip manufacturing facility planned in Texas that would require dozens of ASML’s extreme ultraviolet lithography machines, each costing more than $200 million. With total construction costs estimated at $55 billion, the order potential for ASML is enormous.

Yet not everyone inside the company is celebrating. Staff have used the internal platform Viva Engage to voice opposition to Musk’s political views, with some threatening a boycott of the event. Management has defended the invitation, arguing that the Terafab project is too strategically important for the industry to ignore.

The buyback programme itself is part of a €12 billion scheme announced in January, running through 2028. Up to 2 million repurchased shares can be used for employee programmes, with the rest earmarked for cancellation. In the first quarter alone, ASML spent roughly €1.1 billion on buybacks. The company is quick to note that the programme can be suspended or terminated at any time – but for now, the pace remains steady.

The operational backdrop supports the confidence. In the first quarter, ASML generated net sales of €8.8 billion, a gross margin of 53% and net profit of €2.8 billion. In April, management raised its full-year 2026 outlook, now forecasting revenue between €36 billion and €40 billion, with gross margin in the 51%–53% range. Chief executive Christophe Fouquet attributed the upgrade to chip demand outstripping supply, prompting customers to accelerate capacity plans.

Analysts have responded with a flurry of target upgrades. BofA Securities sees the stock reaching €1,921, Barclays €1,900, and Morgan Stanley €1,660. The bullishness is rooted in the expansion of artificial intelligence infrastructure, which is driving demand for ASML’s lithography tools.

The shares have soared roughly 53% since the start of the year. They trade about 18% above their 50-day moving average and more than 40% above the 200-day average. The relative strength index sits at 64.5 – elevated but not yet in overbought territory.

The next major test comes on 15 July, when ASML reports second-quarter results. Investors will be watching closely to see whether order intake can sustain the recent momentum. Geopolitical risk remains the biggest cloud: tighter US export controls could completely halt sales of older-generation machines to China, a lucrative market. For now, though, the combination of a massive buyback, a potential megafactory order and strong analyst support has kept the shares on an upward trajectory.