ASML Leads the AI Memory Cycle as Samsung and TSMC Race for High-NA Tools

NVIDIA (NVDA) and ASML (ASML) participated in Mistral's €3 billion Series D funding round, valuing the AI company at over €21 billion. The investment aims to expand Mistral's research and operations. NVIDIA may benefit from increased hardware demand, while ASML could improve chip manufacturing diagnostics. Both companies have existing ties to Mistral, with NVIDIA planning infrastructure deployment and ASML reporting diagnostic improvements. The investment is not expected to directly impact their

ASML is collaborating with TSMC and Samsung to develop advanced chip machines using larger reticles, aiming for trials by 2031 and production use by 2033. The initiative seeks to boost productivity and potentially lower costs. TSMC and Samsung have committed to adopting ASML's High-NA EUV lithography machines, with Samsung planning mass production by 2028 and TSMC by 2030.

ASML's stock rose 4% after announcing partnerships with TSMC, Samsung, and Intel to advance High NA EUV technology. TSMC aims for 2030 production, Samsung for 2028 DRAM. Intel has processed over 1M wafers. ASML's stock is priced at $1714.88, 37.9% overvalued per GF Value™. Its P/E (TTM) is 54.46, higher than its 5-year median of 39.27. ASML has a GF Score™ of 94/100, indicating strong performance but concerns about valuation.

ASML Holding (NASDAQ:ASML) began construction on a 35-hectare campus to address EUV production bottlenecks. The stock rose 2% to $1,751.66. The site, set to open in 2029, will initially employ 3,000 and could expand to 20,000 workers. The campus will feature a new flow factory for TWINSCAN operations.

ASML has secured commitments from TSMC, Samsung, and Intel to adopt its high NA EUV lithography equipment for chip production, with TSMC and Samsung planning to use the machines by 2030 and 2028, respectively. The companies also agreed to shift to 12-inch photomasks to boost productivity and reduce costs amid surging AI demand. ASML's technology could increase throughput by 40%, according to its CTO.

Samsung and TSMC have committed to purchasing ASML's High NA EUV lithography systems, joining Intel. Samsung aims to use them for high-density DRAM by 2028, while TSMC plans a 2030 rollout. ASML's machines, priced at $400M each, are crucial for advanced AI chip production. The companies are also collaborating to develop 12-inch photomasks to improve efficiency.