This information was reported in a Reuters report on Monday (July 20).
Currently, ASML holds a near-monopoly in the market for Extreme Ultraviolet (EUV) lithography technology, which is essential for producing cutting-edge AI chips. The machines manufactured by the company enable the creation of extremely tiny electrical circuits, playing a crucial role in producing more powerful and high-performance chips.
The growing demand for advanced chips due to the expansion of AI-based technology is rapidly increasing the demand for ASML's machines. According to the Reuters report, the company's share price has risen by about 60 percent this year, bringing its market value to approximately $700 billion.
Analysts believe that if ASML's share price reaches around $2,600, the company's market value could exceed $1 trillion.
Almost all orders for the company's most advanced EUV machines are booked through 2027. This has created positive expectations in the market regarding future revenue and growth.
Currently, ASML's shares are trading at about 38 times the expected earnings for 2027. This means investors are showing interest in buying shares at a relatively high price, expecting the company's earnings to increase significantly in the future.
Investment analyst Caroline Bell believes that ASML has a strong potential to become Europe's first trillion-dollar company. However, it is not yet possible to confirm exactly when the company will reach this milestone.
According to analysts, several factors will be important for this possibility to materialize. These include how long major technology companies like Google and Amazon maintain their current investment trends in AI infrastructure and data centers, and how successfully ASML, Taiwan Semiconductor Manufacturing Company (TSMC), and Samsung can implement their production expansion plans.
