Teng Yan
Founder of Tessara, AI Buildout & Supply-Chain Research
ASML's upgrades and parts capture the chip shortage before its long-lead-time systems do. Q3 installed-base revenue reached €3.3B versus ~€2.9B guided, a ~€0.4B beat after Q2's ~€0.3B beat. System prices are locked in years ahead; upgrades add wafers per hour to tools already running while chipmakers wait for new machines into 2028. The Elec reportedly says Samsung and SK hynix accepted a 10% parts increase from January, though that report was unconfirmed. x.com
ASML can price replacement parts against memory makers' windfall. With Samsung's reported DRAM prices nearly quadrupling, a 10% rise in parts needed to keep fabs running is easier to bear; TheElec reports Samsung and SK hynix accepted the January increase. TSMC reportedly resisted a separate DUV hike in July. Watch installed-base revenue against the roughly €2.9B guide. x.com
ASML cannot make enough EUV machines to meet demand, which it says will outrun supply through 2028. Its 2026 sales guide rose from €34-39 billion to €44-45 billion, and gross margin hit 57.5%. The combination of an EUV monopoly, demand outrunning supply and growing pricing power is rare. x.com
ASML's planned 2027-28 output cannot meet customer demand, supporting a Buy rating and €1,830 target. Long-term customer down payments rose from €3.6bn to €9.3bn; customers seek 2029-30 orders that ASML has not accepted. Critical-tool price rises begin in 2027, with full effect in 2028, but are not meant to recur annually. Q3 EPS excluding a €509.7m investment gain still beat consensus. x.com x.com x.com x.com x.com
ASML may have topped, since semicap thrives on shortage and would be hit hardest in an overbuild. Then earnings acceleration from memory and fab projects stops or reverses; the labs' leading-edge chase may be at its apex, positioning is bullish and the moat is threatened. Bullishness on Korean, US and Taiwan fab projects makes sense for now. But if the cycle top is confirmed and labs change how they chase the frontier, or token deflation kills some labs, the shortage can end sooner. x.com x.com … Show more
ASML is getting paid more for each tool, moving beyond proving it can build enough of them. Q3 2026 brings pricing power and an order book reaching 2030; the house view has strengthened, with high conviction. x.com
ASML's growing installed base generates recurring service revenue that raises its revenue floor during industry downturns. Fiscal.ai's chart shows quarterly service and field option revenue of 3,289 million in September 2026. ASML's CEO says planned supply for 2027 and 2028 will not fully meet customer demand, and the company is exploring capacity beyond the previously communicated 30% increase for 2028. x.com x.com
ASML's growth path loses momentum on news that TSMC can make some chips without ASML's machines. x.com
Requests for ASML lithography-tool slots as far out as 2030 signal years of locked-in downstream AI infrastructure spending plans. ASML's machines come before the chips, making those customer requests a clearer early demand signal than chip headlines. x.com
ASML's EUV R&D is starting to pay off through operating leverage. Q3 R&D fell as a share of sales, though one quarter is not a trend. Higher units, IBM sales and EUV/DUV prices put 2028 estimates well above the 2030 guide and ahead of consensus; shares look cheap at €1,530. Assuming 30% prepayment, liabilities imply €42-45bn of orders in 2026's first nine months, subject to invoicing lags. The proposed MATCH Act could restrict China sales; 2029-30 demand is less certain than 2028. x.com x.com … Show more
ASML has yet to fall despite losing its biggest customer, TSMC, until 2029, a customer responsible for 70% of its revenue. That disconnect reflects the current state of the chip bubble. x.com
Micron and SK hynix pricing in a memory shortage past 2030 extends the memory-cycle case beyond the Street's 2028 expectation. SK hynix's record quarter adds evidence: per Wall St Engine, revenue rose 328% to $78.9B, operating profit rose 632% to $62.8B, and operating margin hit 80%. Agentic and physical AI could add demand as they roll out. x.com x.com
