ASML Holding N.V.

ASML Holding N.V. is riding strong momentum in its Installed Base Management business, which generated 2.8 billion euros in sales in the second quarter, up 31.8% year over year and about €300 million above management's expectations. The business benefits from the large and expanding fleet of ASML systems already operating at semiconductor manufacturers, and continued expansion of the EUV installed base is increasing the company's overall service opportunity. Demand is being driven not only by fleet expansion but also by software-led upgrades that improve productivity without significant machine time or production disruption. ASML expects to ship about 65 Low-NA EUV systems in 2026, with EUV revenue projected to rise roughly 45%, and management expects the combination of upgrade and service revenue to drive more than 30% growth in Installed Base Management sales in 2026. Sustaining that pace will depend on continued semiconductor investment and customer demand. Elsewhere in the semiconductor space, Monolithic Power Systems is gaining content across AI infrastructure and has extended its capacity goal beyond $6 billion, while Applied Materials delivered a record third quarter on the rapid global build-out of AI infrastructure.

Samsung Electronics agreed a new collaboration with Mistral AI to deploy advanced on-premises AI models in chip manufacturing, and expanded its partnership with ASML to include High NA EUV lithography for future memory and logic production lines. The company plans to use these AI and High NA EUV tools to support precision, security and efficiency in its semiconductor operations. Samsung runs a broad hardware and components portfolio across consumer devices, IT and mobile, and chipmaking, so tighter links with specialist AI model developers and lithography equipment suppliers speak directly to how its device solutions arm positions itself within global semiconductor supply chains. The move strengthens the Samsung Electronics Narrative catalyst around tight memory supply and HBM4E demand, while closer cooperation with ASML on High NA EUV and 12 inch photomasks leans into the heavy R&D and capex risk already flagged, since each new generation of tools can lift capital intensity and execution pressure in fabs. Investors should watch how Samsung describes AI enabled yield, defect detection and High NA EUV deployment progress in its next few quarterly disclosures, especially any 2027 to 2028 updates tied to planned High NA introduction in DRAM high volume manufacturing.

ASML and Taiwan Semiconductor Manufacturing both reported Q2 2026 results in mid-July, with ASML raising its full-year outlook on AI-driven lithography demand and TSMC lifting its capex plan while pushing 2nm into commercial production. ASML delivered $10.65 billion in revenue, up 21.3% year over year, with operating margin expanding to 37.1%, and memory-related system sales now expected to grow over 75% this year. TSMC's revenue hit $40.20 billion, up 36.0%, with gross margin at 67.7%, as HPC drove 66% of revenue and advanced nodes at 7nm and below made up 77% of wafer revenue. TSMC raised its 2026 capital budget to $60 billion to $64 billion and announced another $100 billion Arizona investment, capital that ASML will help spend. ASML is close to being fully covered with low-NA EUV orders for 2027 and is studying a further 30% capacity expansion for 2028, with CEO Christophe Fouquet saying, "We're not waiting. We're preempting."

ASML Holding is studying ways to manufacture more than 110 extreme-ultraviolet lithography systems in 2028 after its 2027 capacity became nearly fully committed, according to Reuters. The company expects to have capacity for at least 80 EUV systems in 2027, so expanding to more than 110 would represent an increase of at least 37.5%. ASML's second-quarter results showed 9.3 billion in sales and a 54% gross margin, while management lifted full-year revenue guidance to 43 billion to 45 billion. The shares gained approximately 0.5% to $1,582.91 in U.S. trading Tuesday, a level that sits 25.29% above a GF Value of roughly $1,260. With High-NA EUV systems carrying prices around $400 million, even a handful of extra deliveries can move revenue materially.

ASML Holding N.V. is examining ways to produce more than 110 EUV lithography systems in 2028, according to JPMorgan analysts following a meeting with CFO Roger Dassen. The company is already nearly sold out for 2027 and expects to produce at least 80 EUV systems that year, so output above 110 in 2028 would represent at least a 37.5% increase from the 2027 level. JPMorgan said the main constraint has shifted toward assembly speed rather than the availability of critical components, suggesting ASML believes additional capacity can be unlocked through manufacturing and assembly improvements. The potential increase is being driven primarily by AI-related demand, with ASML's existing EUV machines, which cost roughly $200 million each, essential for manufacturing leading-edge AI processors, while customers including TSMC, Samsung, SK Hynix and Intel are expanding advanced-chip capacity. Reuters reported separately that virtually all of ASML's EUV production capacity is booked through 2027, while the company has begun construction of a new Eindhoven facility designed to accelerate tool assembly and eventually accommodate up to 20,000 workers.

Applied Materials CEO Gary Dickerson told David Faber at Goldman's Copia Conference that the company is approaching 40% growth this year, driven entirely by AI compute demand, and he expects strong growth in 2026, 2027 and beyond, backed by rolling eight-quarter customer forecasts and longer tool-shipment commitments. The August quarter delivered revenue of $9.12 billion, up 24.8% year over year, with non-GAAP EPS of $3.50, and guidance for the October quarter calls for revenue near $10.25 billion; CFO Brice Hill said customer visibility extends in some conversations to 2030 and the company is preparing to double its quarterly system output by 2028. Dickerson said DRAM revenue grew from 22% to 26% of semiconductor systems revenue, with DRAM including HBM packaging up 52% year over year to record levels, while advanced packaging is expected to grow more than 70% in calendar 2026. Peer results corroborate the order book: Lam Research reported June-quarter revenue of $6.72 billion, up 30.0% year over year, and raised its calendar 2026 WFE view to the low $150 billion range from $140 billion; KLA posted record revenue of $3.66 billion with remaining performance obligations around $12.5 billion; and ASML plans to add 30% to its 2026 low NA EUV capacity of around 65 for 2027, with another 30% under investigation for 2028. Applied trades at a trailing P/E of 41x and forward P/E of 26x at a current price of $468.85, up 188.38% over the past year but down 10.11% over the past month and below its 52-week high of $738.88, with the 200-day moving average at $407.06.

Global wafer-fabrication-equipment spending is projected to rise 16.9% to a record $135.2 billion in 2026, up from $115.7 billion in 2025, with memory equipment growing faster than the broader market. Within that total, 300mm DRAM equipment spending is projected to rise 29% to $37 billion and 300mm 3D NAND equipment spending is expected to increase 28% to $14 billion, while logic, foundry and other equipment spending remains the largest category at approximately $84.2 billion but grows just 10.6%. The combined $51 billion of DRAM and NAND equipment spending is being driven by Samsung Electronics, Micron Technology and SK hynix simultaneously expanding investment in advanced DRAM, high-bandwidth memory, NAND, cleanrooms and advanced packaging. Lam Research, the most direct beneficiary, reported record June-quarter revenue of $6.72 billion and fiscal 2026 revenue of approximately $23.23 billion, up from $18.44 billion in fiscal 2025, and recently raised its quarterly dividend 27% from $0.26 to $0.33 per share. KLA reported fiscal fourth-quarter revenue of $3.66 billion, up approximately 15% year over year, with fiscal 2026 revenue of $13.58 billion and GAAP net income of $4.83 billion, while ASML reported second-quarter 2026 net sales of €9.3 billion, a 54% gross margin and net income of €2.9 billion, and raised its expected 2026 net sales range to between €43 billion and €45 billion. The principal industry risk remains eventual memory overinvestment, though current investment is concentrated on advanced products, cleanrooms and process migrations.

ASML Holding NV is expanding its High-NA EUV customer collaborations with Samsung Electronics and Intel as AI-related chip demand raises manufacturing complexity. On Tuesday, ASML expanded its long-standing partnership with Samsung around High-NA EUV and advanced semiconductor manufacturing, and that same day extended its collaboration with Intel on future scaling needs, including larger-format masks. Intel has already moved High-NA into production, helping Intel Foundry in Panther Lake production and qualifying the technology on select 18A product layers, which ASML's second-quarter presentation described as a new readiness milestone. Samsung is joining an industry initiative to develop a 12-inch photomask platform for High-NA EUV and plans to introduce ASML's High-NA technology into future DRAM high-volume manufacturing by 2028. In the first quarter of 2026, the High-NA platform had processed more than 0.5 million wafers and achieved availability above 80%, while ASML expects advanced foundry Logic revenue to rise about 25% in 2026, Memory revenue to increase 75% and EUV revenue to grow about 45%. Management still expects discussions with all customers on exactly how and when High-NA will enter high-volume manufacturing, leaving the pace of wider adoption dependent on customer qualification and manufacturing decisions.

ASML Holding NV raised its 2026 net sales guidance to €43-€45 billion and gross margin guidance to 54-56%, citing accelerating AI-related spending across advanced Logic and Memory manufacturing. Management expects advanced foundry Logic revenue to increase about 25% in 2026, Memory revenue to rise 75% and extreme ultraviolet revenue to grow about 45%. By the second quarter, ASML was close to receiving all EUV orders needed for 2027 and had already received many for 2028, and it plans to increase 2027 low numerical aperture EUV capacity about 30% from roughly 65 systems in 2026, with deep ultraviolet immersion capacity following the same 30% expansion path from about 130 systems. Second-quarter operating cash flow reached €1.70 billion and free cash flow was €1.32 billion, while ASML repurchased about €1.1 billion of shares. The stock trades at 31.5X forward 12-month earnings versus 23.7X for its industry, 20.7X for the sector and 20.0X for the S&P 500, and ASML carries a Zacks Rank #3 (Hold).

Taiwan Semiconductor Manufacturing Company, or TSMC, is teaming up with ASML Holding N.V. to advance the semiconductor industry's shift toward larger-format extreme ultraviolet photomasks. The companies established the industrywide initiative on Sept. 7, ahead of the annual SPIE BACUS Conference in Monterey, CA, aiming to establish a 12-inch mask pilot line by 2031 and pave the way for 12-inch High-NA lithography systems to enter advanced-node production by 2033. While High Numerical Aperture EUV will initially be adopted for production using the current 6-inch masks, the transition to larger 12-inch masks is expected to boost fab productivity, lower chipmaking costs and eliminate stitching constraints across the semiconductor industry. TSMC plans to use ASML's High-NA technology in high-volume manufacturing for advanced nodes starting in 2030, and expects more layers to require High NA EUV as nodes advance, primarily because of increasingly complex transistor architectures needed for AI applications. Separately, Intel Foundry and ASML said High NA is now being used in high-volume manufacturing, with more than one million wafers processed to date across early tool certification and testing, research and development, and volume production on select layers for a subset of Intel Core Ultra Series 3 processors, code-named Panther Lake.

Taiwan Semiconductor Manufacturing Co. reported a 53.3% increase in monthly sales, with August revenue reaching NT$514.8 billion, or $16.3 billion, as the company struggles to meet overwhelming demand from the global AI infrastructure buildout. Analysts on average expect 46.8% sales growth for the current quarter. The go-to chipmaker for Nvidia Corp. and Apple Inc. has said it cannot catch up with demand even as it builds new factories at an unprecedented pace, with Deputy Co-Chief Operating Officer Cliff Hou saying this month that TSMC is trying to construct and furnish about 20 factories at home and overseas, against a past record of four or five new buildings at once. Hou said the company's needs for chipmaking tools have nearly doubled since the end of last year. TSMC also recently struck an agreement with ASML Holding NV to begin using the Dutch company's state-of-the-art High NA extreme ultraviolet lithography machines in mass production starting from 2030, after previously saying it would not deploy the systems, which can cost $400 million apiece, due to cost concerns. In July, TSMC raised its spending and revenue projections for the year, expecting capital expenditure to reach a record $60 billion to $64 billion in 2026 and full-year sales to grow slightly above 40% in US dollar terms.

Intel and ASML have announced that more than one million wafers have been processed using High-NA EUV lithography, marking a significant step toward commercial manufacturing. The technology is being used for select layers of Intel's Core Ultra Series 3 processors, code-named Panther Lake, produced on Intel 18A, and the companies report that performance meets or exceeds comparable layers patterned using the NXE platform. ASML plans to pilot larger-format masks by 2031 and have the technology ready for high-volume production by 2033, with collaboration from major customers like TSMC and Samsung. Intel's Q2 2026 report revealed a revenue of $16.1 billion, a 25% increase year-over-year, but its foundry business still posted an operating loss of $2.1 billion, with only $293 million of quarterly revenue from external customers. While the milestone boosts confidence in High-NA adoption, Intel must prove it can convert manufacturing progress into profitable external foundry business, and ASML faces the challenge of broader customer adoption over time.

Xanadu Quantum Technologies and ASML have announced a collaboration to develop advanced lithography processes for Xanadu's photonic quantum hardware, aiming to reduce optical losses in quantum computing chips and accelerate the path to utility-scale quantum computing. The partnership will explore how lithography innovations can improve patterning control and lower-loss photonic structures, addressing the technical challenge of optical loss influenced by line edge roughness. Xanadu's CEO, Dr. Christian Weedbrook, emphasized the importance of fault tolerance and error correction, while ASML's Stan Baron expressed enthusiasm for supporting next-generation photonics applications. This collaboration marks a significant step for Xanadu in advancing its photonic quantum technology and solidifying its position in the semiconductor and quantum computing ecosystem.

Qualcomm, Intel, Amkor, Nova, and FormFactor shares traded up in the afternoon session after Qualcomm announced a multi-generational product collaboration with Amazon Web Services to develop custom AI data center infrastructure, while ASML, TSMC, and Intel achieved key milestones in next-generation chip manufacturing. Qualcomm's partnership with AWS focuses on co-designing successive generations of custom AI chips for high-performance inference and data center workloads, aiming to strengthen AWS's internal hardware ecosystem, reduce operating costs, and improve energy efficiency. Simultaneously, ASML and TSMC announced a joint initiative to transition from traditional 6-inch photomasks to larger 12-inch formats, targeting a pilot line by 2031 and full production by 2033, which will expand the print field and reduce manufacturing costs. Additionally, Intel Foundry and ASML confirmed that Intel has processed over one million wafers on its Intel 18A node using High NA EUV equipment. These coordinated advancements boosted investor confidence in sub-2-nanometer chip designs and next-generation AI infrastructure. Among the stocks, Intel jumped 9.5%, Amkor and FormFactor each rose 6.3%, Nova gained 3.7%, and Qualcomm advanced 3.3%.

ASML, the Dutch semiconductor equipment maker, said on the 8th that it has started construction on a large new production facility in the Netherlands to cope with the surge in demand driven by the artificial intelligence (AI) boom. The new project, called "BIC North," will be built on about 35 hectares of undeveloped land near Eindhoven Airport, about 7 kilometers from Veldhoven, where its headquarters and main production facilities are located. CEO Christophe Fouquet said in a statement that "the growing global demand from the semiconductor industry requires continuous investment." This investment will ultimately add up to 20,000 workspaces, and the first phase, targeted for completion by 2029, will include offices, logistics facilities, and cleanrooms. ASML says the new facility will enable it to assemble its huge semiconductor lithography machines more quickly and efficiently.

ASML Holding broke ground Tuesday on a 35-hectare campus in Eindhoven designed to relieve its increasingly tight EUV production pipeline, with the stock climbing about 2% to $1,751.66. The first opening is slated for 2029, accommodating at least 3,000 employees, and the fully developed site could eventually provide 20,000 workplaces across 350,000 square meters. The centerpiece is a new flow factory that will consolidate TWINSCAN materials, manufacturing, and installation operations under one roof. ASML shipped 86 new lithography systems in the second quarter, a 28.4% jump from the first quarter, and management targets a 30% increase in low-NA EUV capacity for 2027. However, the campus will not open soon enough to solve today's bottleneck, as existing plants and suppliers must carry three more years of customer commitments.

Intel Corporation crossed the one-million-wafer milestone using high-numerical-aperture extreme-ultraviolet technology, sending shares up about 7.6% to $103.07 and adding roughly $37 billion in market value. The company and ASML also proved that reticle stitching can pair High-NA equipment with existing six-inch masks, potentially sparing chip designers from an expensive redesign. Intel said certain Intel 18A layers manufactured with High-NA delivered performance matching or beating equivalent layers made with conventional EUV systems, and the technology has moved into limited Panther Lake production. Intel's latest quarter produced $16.1 billion in revenue alongside approximately $8.4 billion of negative adjusted free cash flow. GuruFocus places GF Value at $31.96, leaving the $103.07 share price 222.5% above that estimate, highlighting the challenge of justifying the premium with profitable outside foundry contracts.

Intel shares climbed 5% to $101 after Intel Foundry and ASML confirmed that more than one million wafers have been processed on High-NA EUV equipment, including production layers of Intel's Core Ultra processors code-named Panther Lake, a milestone that puts Intel years ahead of rivals. ASML rose 3% to $1,773, and Taiwan Semiconductor Manufacturing gained 3% to $438, both benefiting from AI-driven demand. Samsung plans to adopt High-NA EUV for DRAM by 2028, and TSMC for advanced nodes by 2030, while Intel's Q2 2026 revenue rose 25.4% to $16.13 billion, its strongest growth in 15 years. ASML raised its full-year 2026 sales outlook to between €43 billion and €45 billion, and Intel Foundry booked $5.765 billion in Q2 revenue, up 31% year over year, despite a $2.1 billion operating loss. A separate factor was President Trump's social media post claiming stock gains, which may have influenced flows, but analysts caution that Intel's 172% year-to-date gain already reflects heavy optimism.

French artificial intelligence company Mistral has raised 3 billion in fresh equity financing, valuing the startup at about 21 billion ($24 billion) in what it said was the largest private technology funding round in Europe. The financing was led by PSG Equity, Samsung Electronics, and the EU-backed Scaleup Europe Fund, with Samsung and the fund joining as first-time investors. New participants included BlackRock, Advent, and Luxembourg's government, alongside returning investors such as ASML, NVIDIA, and Salesforce. The capital will support Mistral's AI model development and frontier research as it competes with larger U.S. firms. Mistral operates in 20 countries and serves over 125 enterprises, including Airbus, ASML, and HSBC, though its valuation remains below U.S. leaders like Anthropic and OpenAI.

ASML Holding NV rose 2.91% in premarket trading after Taiwan Semiconductor Manufacturing Co. and Samsung Electronics committed to its High NA EUV lithography systems, which cost about $400 million each. TSMC, which had previously been cautious about the cost, will begin using the systems in 2030, while Samsung will start in 2028 for memory production, joining Intel Corp. TSMC alone accounts for roughly 16% of ASML's revenue, according to Bloomberg data. The companies also agreed to shift photomasks from the 6-inch standard to 12-inch versions, a change that ASML's chief technology officer Marco Pieters said could boost High NA throughput by 40%. TSMC and ASML plan a test line for 12-inch masks by 2031, with production use on High NA tools by 2033.

ASML Holding NV's next-generation High-NA extreme ultraviolet lithography technology is gaining adoption among major chipmakers, with Intel already using it in production and TSMC and Samsung preparing to follow. The technology enables printing smaller and more complex features on advanced chips, which is increasingly critical as AI processors grow larger and more intricate. Intel is the furthest along, employing High-NA EUV for certain layers of its 18A process, while TSMC is expected to bring it into production later this decade and Samsung is also preparing for wider adoption. ASML remains the sole commercial-scale supplier of EUV systems, giving it a unique position in the AI-driven semiconductor boom. The key question now is how quickly TSMC and Samsung transition High-NA EUV from testing to high-volume manufacturing.

ASML Holding announced that Samsung Electronics, Taiwan Semiconductor Manufacturing, and Intel are moving forward with its latest High-NA extreme ultraviolet lithography equipment, strengthening the outlook for next-generation AI chips. Samsung plans to begin using High-NA systems for computer memory by 2028, while TSMC will adopt the technology from 2030, and Intel Foundry continues to use it in high-volume manufacturing. The companies are also collaborating with ASML on a shift from 6-inch to 12-inch photomasks, which could improve productivity and lower costs. ASML's chief technology officer, Marco Pieters, said the larger masks could increase High-NA machine throughput by 40 percent. TSMC's adoption is particularly significant as it accounts for about 16 percent of ASML's revenue, according to Bloomberg data.

ASML Holding N.V. has reported transactions under its current share buyback program, which was announced on 28 January 2026. During the week from 31 August to 4 September 2026, the company repurchased a total of 314,178 shares, comprising 66,000 shares on 31 August at a weighted average price of €1,468.54, 75,000 shares on 1 September at €1,441.05, 63,000 shares on 2 September at €1,436.69, 71,857 shares on 3 September at €1,420.11, and 38,321 shares on 4 September at €1,449.59. The total value of these repurchases was €453,108,563. The update is made public under the Market Abuse Regulation.

ASML plans to expand its Japan workforce by about 40 percent to roughly 700 employees by 2030, driven by growing demand for advanced semiconductor equipment. The Dutch chip equipment maker currently employs around 500 people in Japan, as outlined by ASML Japan President Shojiro Fujiwara at a Thursday press conference. The expansion includes support for Rapidus, which aims to start producing 2-nanometer chips in 2027, and ASML has already increased its engineering team in Hokkaido from 24 to 50 people. Kumamoto may also see more ASML staff as Taiwan Semiconductor Manufacturing builds its second fabrication plant there, with TSMC partnering with Sony Group to produce advanced image-sensor chips for smartphones by 2029. ASML's Japan sales reached NT$44.34 billion, or about $1.4 billion, in 2025, with customers including TSMC, Rapidus, and Micron Technology's Hiroshima facility.

Top investors on The Investing for Beginners Podcast named Taiwan Semiconductor Manufacturing, ASML, Amazon Web Services, and Microsoft Azure as AI stocks that could win regardless of which model leads. TSMC ranks first for its manufacturing moat, guiding slightly above 40% year-over-year 2026 revenue growth in U.S. dollar terms, while ASML's EUV lithography monopoly is nearly fully booked for 2027. AWS delivered its fastest growth in 18 quarters at 36.7%, while Azure grew 43% backed by $678 billion in commercial backlog. Frontier labs OpenAI and Anthropic land in the too-hard pile, being private companies whose competitive edge hinges on winning an unpredictable model race.

Taiwan Semiconductor Manufacturing Company reported July revenue of NT$467.58 billion, or about $14.5 billion, up 45% from a year earlier, ahead of its own recently raised full-year guidance of slightly above 40% growth in dollar terms. Chairman C.C. Wei called AI-related demand extremely robust, and European chip stocks including ASML rose on the news even as the broader PHLX Semiconductor index sits roughly 15% below its June high. High-performance computing, which houses AI chip production for customers like Nvidia and Google, made up 66% of TSMC's second-quarter revenue, and the company raised its 2026 capital spending guidance to a record $60 billion to $64 billion. Separately, TSMC and Sony are reportedly in talks to invest a combined $6.4 billion in a Japan image sensor plant targeting 2029 production. Despite the beat, TSMC's own shares are down roughly 5% from their late-June high, and analyst Ben Barringer cautioned that monthly figures can jump around.

Zeiss, the German optics maker whose mirrors are critical to ASML's most advanced chipmaking machines, said it is confident it has the capacity to handle booming AI-driven demand. Zeiss's semiconductor division head Frank Rohmund stated that the company is building out its headquarters and a new factory to keep pace, calling these the real long-term items for capacity expansion. The statement addresses one of the biggest investor fears about bottlenecks in the AI supply chain, as Zeiss components already play a role in producing about 80 percent of the world's chips. ASML recently raised its 2026 annual sales outlook to between 49.3 billion dollars and 51.6 billion dollars, while its biggest customer TSMC reported record profits driven by AI demand. Rohmund also noted that ASML and Zeiss have a roadmap extending to around 2040, though he warned that sooner or later there will most likely be some kind of correction.

ASML Holding shares jumped as much as 5% Tuesday after Taiwan Semiconductor Manufacturing reported robust July sales. TSMC, one of ASML's largest customers, posted net revenue of NT$467.58 billion, up 44.7% year over year and 5.6% sequentially, putting it on track to exceed Wall Street's quarterly consensus of NT$1.45 trillion. Strong demand for TSMC's chips typically translates to higher sales of ASML's extreme ultraviolet lithography systems, where the company holds a near-monopoly. The rally follows ASML's better-than-expected second-quarter results, which CEO Christophe Fouquet attributed to ongoing AI-related investments.

Intel announced plans to offer $15 billion in new stock, its first public equity offering since listing in 1971, to fund AI applications, purpose-built silicon, and foundry expansion. The capital raise follows Intel's strongest quarterly performance in years, with Q2 revenue of $16.1 billion, up 25% year-over-year, and Data Center and AI segment revenue surging 59% to $6.3 billion. Proceeds will support high-volume manufacturing of Intel Core Ultra Series 3 processors using ASML's high-NA EUV technology and a €5 billion investment to expand Xeon 6 capacity. The offering comes as Intel ranks fifth among S&P 500 components year-to-date, up 170.79%, and aims to capture growing AI inference demand, with more than 130 customers adopting or testing its processors for edge AI and robotics.

U.S. stock indexes were mixed on Tuesday as crude oil prices reversed early gains on signs of progress in U.S.-Iran talks over the Strait of Hormuz, pulling bond yields lower. The S&P 500 edged up 0.04%, the Dow rose 0.32%, and the Nasdaq 100 slipped 0.07%. WTI crude gave up an overnight advance of more than 2% after Pakistan's defense minister said signals suggest an agreement is near, while the 10-year Treasury yield fell 2 basis points to 4.68%. Chipmakers and AI-infrastructure stocks provided support, with ASML and KLA up over 4%, while software names lagged. In earnings, Cardinal Health gained over 4% after beating estimates and issuing strong guidance, while ON Holding tumbled more than 21% on disappointing sales.

Applied Materials is in focus after TSMC reported a 44.7% year-over-year revenue jump in July driven by strong AI chip demand. The surge at the leading foundry signals potential increases in capital spending on wafer fabrication equipment, which could benefit suppliers like Applied Materials. The news reinforces the thesis of an AI-driven wafer fab equipment supercycle, though risks such as customer concentration and export controls remain. Applied Materials shares have returned 100.5% year to date and 194.6% over the past year, despite a 10.5% decline in the past month.

ASML Holding raised its 2026 revenue outlook to a range of 43 billion to 45 billion euros, with the midpoint implying roughly 16% growth from its previous range. The lithography giant reported second-quarter revenue of 9.33 billion euros and net income of 2.92 billion euros. ASML plans to boost annual EUV production capacity by roughly 30% in both 2027 and 2028, with most of the extra EUV capacity through 2027 already booked. The bullish signal was reinforced by TSMC's July revenue surging 44.7% year over year to NT$467.58 billion. ASML's U.S.-listed shares gained roughly 1.7% Monday morning.