ASML's Staff Revolt Over Musk Casts Shadow Over Chip-Tool Giant's Record Rally

ASML shares surge to €1,682 weekly high as Intel's 18A-P node and Musk's $55B Terafab fuel demand, yet internal dissent over Musk's visit creates tension.

The Dutch lithography titan is riding an extraordinary wave — shares have hit a fresh 52-week high of €1,682, up roughly 70% since January and 154% over twelve months — but beneath the surface, tensions are stirring. The very catalyst driving the latest leg of the rally, Elon Musk’s audacious Terafab project, has provoked an internal backlash. Employees openly pushed back against an invitation for Musk to speak at ASML’s annual technology conference, airing their grievances on internal platforms. That mix of market euphoria and staff unease sets a complex tone for a company whose monopoly on extreme ultraviolet (EUV) lithography makes it indispensable to every major chipmaker.

Intel’s announcement at the VLSI Symposium in Honolulu that its enhanced 18A-P process node has entered risk production provided the immediate trigger for the new high. The step typically precedes commercial mass production by six to twelve months, signaling that Intel will soon require additional EUV capacity. For ASML, the world’s sole supplier of such systems, each foundry expansion feeds directly into its order books. The 18A-P node promises either 9% higher performance at the same power or 18% lower energy consumption — a fabricators’ incentive to move quickly.

Musk’s planned Terafab — a $55 billion chip plant jointly funded by SpaceX, Tesla and xAI, set to produce 100 to 200 billion AI chips annually — further bolsters the demand narrative. ASML CEO Christophe Fouquet explicitly cited the project, warning the company cannot afford supply bottlenecks for such mega-fabs. Yet the employee discord over Musk’s involvement has become an awkward subplot.

The fundamentals nevertheless remain robust. In the first quarter of 2026, ASML posted revenue of €8.8 billion with a net profit of €2.8 billion. Management raised its full-year revenue guidance to between €36 billion and €40 billion and targets a gross margin of 51–53%. A hefty share buyback program is reinforcing the stock: the company repurchased about €1.1 billion worth of its own equity during the first quarter alone, underscoring confidence in its cash generation.

Valuation reflects ASML’s unassailable market position. With a market capitalization of roughly $738 billion, the stock trades at a price-to-earnings multiple of around 60 — a premium that analysts justify by pointing to its monopoly and the structural growth in AI infrastructure. Out of 40 analysts covering the stock, 38 rate it a buy. The consensus earnings forecast for the second quarter, due on July 15, stands at $8.06 per share.

Looking further ahead, some bullish strategists see potential for more than 110 Low-NA EUV system shipments annually, well above current market estimates. That kind of volume would require sustained expansion by Intel, TSMC and others — a prospect that keeps ASML at the center of the semiconductor investment cycle, even as internal dynamics add an unexpected layer of volatility.