$ASML

European AI-linked stocks rose after Anthropic's $11.6B computing deal with Akamai. ASML, Infineon, STMicroelectronics, and others gained. The deal includes a warrant for 7.7M shares at $111.33 each, with Akamai investing $5.5B in capital expenditures.

ASML reported no sales in Europe this quarter, down from 1% previously. The company's executive vice-president, Frank Heemskerk, suggested Europe should focus on capital markets and reducing bureaucracy. ASML's largest market is South Korea, accounting for 43% of its quarterly sales. The company expects full-year sales between €43bn and €45bn. PwC's chief economist for The Netherlands, Barbara Baarsma, attributed the drop to demand issues.

ASML reports zero percent revenue share in Europe this year, down from one percent in FY2025. The company is discussing investment incentives with European politicians. ASML is the sole supplier of advanced EUV lithography machines, but European chip fabs are not yet manufacturing leading-edge chips. Despite weak European sales, ASML sees strong demand elsewhere, with TSMC and Samsung committing to High NA EUV tools.

Dutch PM Rob Jetten expressed confidence in reaching a deal with the US on ASML's China export curbs, amid discussions on the MATCH Act. ASML's China sales dropped to 14% in Q2. The MATCH Act could restrict ASML's DUV equipment sales to China, impacting its market share. Jetten also advocated for stronger EU sanctions on Russia.

ASML (NASDAQ:ASML) and Applied Materials (NASDAQ:AMAT) compete in semiconductor equipment. ASML trades at 31x forward earnings, while AMAT trades at 27x. ASML reported €9.3B Q2 sales, 54% gross margin, and €2.9B net income, with 2026 sales forecasted at €43B-€45B. AMAT reported $9.12B Q3 revenue, 50.3% gross margin, and 43% EPS growth. Both face geopolitical risks but have strong market positions.

TSMC and ASML are collaborating to develop larger-format EUV photomasks, moving from 6-inch to 12-inch masks. This shift aims to improve fab productivity, reduce chipmaking costs, and eliminate stitching constraints, making advanced chips more cost-effective to produce.

Nvidia (NVDA) and TSMC (2330.TW) report record revenue and profit growth due to AI demand, with Nvidia's Q2 2027 revenue at $96.221B and TSMC's 8-month revenue up 39.26% YoY. Memory makers like Micron (MU) also see strong growth, while consumer electronics firms face declining revenue. ASML (ASML) benefits from AI chip manufacturing demand, with stock up 60% this year. Global semiconductor revenue is expected to reach $1.6T in 2026, driven by AI infrastructure spending.

Taiwan Semiconductor (TSM) and ASML (ASML) announced a collaboration to transition to 12-inch EUV photomasks by 2033, aiming to boost productivity and reduce costs. TSMC plans to adopt High-NA EUV in 2030, while ASML expects long-term revenue growth. Both companies face capital and execution risks, with TSMC also dealing with near-term margin pressures.

ASML reports no sales of chipmaking systems in Europe. EU industry ministers to debate Chips Act 2.0 on September 24, addressing semiconductor supply chain concerns.

Senate Democrats are pushing for export control legislation to restrict China's access to advanced AI chips, highlighting the issue during Chinese leader Xi Jinping's visit. The bills, with bipartisan support, aim to track chip locations and prevent sales to adversarial nations. Nvidia and AMD are mentioned as companies affected by these potential controls. Industry groups oppose the legislation, arguing it could stifle innovation and harm U.S. competitiveness.