ASML Shares Hit Record High on Groundbreaking Chipmaking Advance

ASML's EUV power boost to 1000W drives stock to €1,271.80, enabling 50% higher chip production efficiency and reinforcing its market dominance.

The Dutch semiconductor equipment giant ASML has reinforced its market dominance with a significant technological breakthrough, sending its equity to unprecedented levels. The company's stock reached a new all-time closing high of €1,271.80 on Tuesday, driven by news of a leap forward in its extreme ultraviolet (EUV) lithography systems.

Financial Performance Sets the Stage

This surge coincides with the formal release of ASML's 2025 annual report, which confirmed preliminary figures showing robust financial health. The company posted annual revenue of €32.7 billion and a net profit of €9.6 billion for the year. Management has provided an optimistic outlook, projecting 2026 sales to reach between €34 billion and €39 billion.

A key growth driver is the scaling of its next-generation machinery. Having recorded its first revenue from two advanced "High NA" systems in the fourth quarter of 2025, ASML plans to ramp annual production capacity for these units to 20 in the coming years.

A Quantum Leap in EUV Power

The core catalyst for the market's enthusiasm is a dramatic enhancement to ASML's EUV light source technology. Researchers at the firm's California development lab successfully increased the power output from 600 watts to 1,000 watts. This achievement was made possible by doubling the tin droplet rate to 100,000 per second and implementing a novel laser procedure.

For chip manufacturers, this technical refinement translates into direct economic benefits. According to ASML executive Teun van Gogh, the new technology enables a throughput increase from the current 220 silicon wafers per hour to approximately 330 wafers per hour by the end of the decade. This represents a 50% efficiency gain, allowing clients to boost production without purchasing additional machines or expanding factory floor space.

Fortifying a Competitive Moat

This innovation arrives at a critical juncture for the industry. Competitive pressures are mounting, with US investors and government funding backing startups like xLight and Substrate to develop alternative EUV technologies. Simultaneously, China is accelerating the development of its own domestic capabilities in response to ongoing export restrictions.

ASML is leveraging this breakthrough to widen its technological lead. Senior technologist Michael Purvis at the company indicated a clear development path toward 1,500 watts, suggesting that 2,000 watts is a feasible longer-term target. This continuous advancement strategy is designed to maintain a considerable gap between ASML and any emerging rivals.

The convergence of this substantial technical progress and strong fundamental financial data continues to propel the company's market valuation upward.