The rise of the Nvidia artificial-intelligence processors, which are the stimulus to the global AI boom, is supported by a Dutch company that is not widely known in the business sector: ASML Holding.
The laser-driven lithographic devices of the company are the only technology that is able to etch the tiny circuitry capable of serving a modern, high-performance microprocessor and hence, this places the Netherlands-based enterprise in an exclusive posturing situation to be a beneficiary of the AI boom.
Machine That Makes the Chips
ASML designs and manufactures extreme ultraviolet (EUV) lithography instruments which are the size of a bus, each. Analysts estimate that ASML’s high-throughput machines account for about 90% of the market for lithography systems. It is the sole manufacturer of EUV technology, which produces light by vaporizing tin droplets with lasers 50,000 times per second.
Said Mizuho analyst Kevin Wang.
We also foresee China business upside in 2026.
Riding Nvidia’s AI Wave
ASML is directly connected to the financial performance of Nvidia whose graphics and AI chips are key drivers of the existing surge in hardware. With major cloud service providers, as well as AI companies, contending to obtain Nvidia GPUs, semiconductor producers like TSMC, Samsung, SK Hynix, and Micron are channeling significant outlays to revenue.
The largest manufacturer of computer chip manufacturing equipment in the world, ASML (ASML.AS), surpassed $500 billion in market value for the first time on Thursday, following the announcement by top client TSMC (2330.TW) of larger-than-expected capital spending plans to meet the rapidly increasing demand for artificial intelligence chips.
According to analysts surveyed by Visible Alpha, TSMC exceeded previous market expectations of $46 billion by increasing its planned capital expenditure to between $52 billion– $56 billion in 2026. This could result in an additional 21% of funds that could be utilized to purchase equipment for making chips.
Samsung is planning an upsurge of 24%, or $40 billion, and SKHynix plans to raise its expenditure by 25 %, or $22 billion as reported by LSEG data.
What Comes Next ?
The expectation of earnings of ASML is to be disclosed on 28 January 2026 will surely draw the attention of investors to revised forecasts and development plans to expand the manufacturing of its next generation of high-numerical-aperture EUV machines.
With approximately a quarter of the capital budget of semiconductor buyers going to lithography (primarily to ASML), the company seems in a solid position to continue to grow as well as the long-term need for lithography of more powerful integrated circuits with AI.