AI Super Wave Reshapes the Chip Supply and Demand Landscape! ASMC's latest outlook strengthens the long-term bullish logic for chip stocks.

ASML Holding NV ADR CEO Christophe Fouquet stated that the thriving global semiconductor market will face long-term supply shortages in the foreseeable future, predicting that the global semiconductor market could reach a staggering $1.5 trillion by 2030. Almost simultaneously, international bank UBS Group AG raised the target stock price of this Dutch semiconductor equipment manufacturer, reinstating it as the top pick in the global semiconductor sector, and UBS Group AG raised the stock price of ASML Holding NV ADR from the previous 1600 euros to 1900 euros. As of early Wednesday on the European stock market, ASML Holding NV ADR's stock price hovered around 1300 euros. Christophe Fouquet said in an interview that the demand for chips dominated by cutting-edge technologies such as AI, space satellite systems, and physical robots like Siasun Robot & Automation far exceeds the industry's production capacity. He mentioned that the global semiconductor market could reach $1.5 trillion by 2030 (market size estimated around $800 billion by 2025), and that "the demand for AI is so strong that the market will remain supply-constrained for quite some time." This indicates a shift in the core contradiction of the global chip industry from past "demand cycle fluctuations" to "capacity expansion acceleration dominated by AI computing infrastructure exceeding the speed of semiconductor equipment, wafer fabs, and advanced packaging and testing factory expansion." ASML Holding NV ADR is the highest-valued public company in Europe, holding a virtual monopoly in the market for printing/etching the highest-tech chip microcircuits for human society to date. Its most advanced EUV lithography tool is crucial for producing essential logic chips for artificial intelligence data centers, along with their accompanying DRAM/HBM storage chips. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, Intel Corporation, and other advanced process chip manufacturers are in nearly endless demand for ASML Holding NV ADR's EUV equipment, specifically the strong demand for the company's EUV devices, helping this Dutch semiconductor equipment manufacturer become the highest-valued company in Europe. In the U.S. stock market, ASML Holding NV ADR's ADR (ASML.US) trading price has risen by 45% this year, hitting multiple record highs. According to big investment firms such as UBS Group AG, Citigroup, and KeyBanc, a new "main uptrend" in ASML Holding NV ADR's stock price has begun. ASML Holding NV ADR's EUV lithography machine, has been hailed as the core device for producing the most advanced AI chips, as well as the essential DRAM and HBM storage chips for global AI applications such as ChatGPT and Claude since 2023. This machine also plays a crucial role in the ongoing "storage chip supercycle" that may continue until 2028, supporting major players in the storage industry like SK Hynix and Micron Technology, Inc. in their efforts to manufacture key storage devices such as HBM storage systems and enterprise-level DRAM storage components. "AI-dominated chip demand is so strong that we will remain in a severely supply-constrained market for quite some time," Fouquet said, pointing out that projects like Elon Musk's epic chip manufacturing project "TeraFab" and the Starlink satellite system are likely to drive a new wave of stronger demand. Musk himself has initiated the "Terafab" AI computing power storm to end the supply shortage of chips with a "human-made chip miracle." Fouquet also expects the first batch of high-performance chips manufactured using the company's next-generation lithography machine, the High-NA EUV lithography machine, to be officially delivered in the coming months. According to ASML Holding NV ADR's official description, High-NA EUV will target the most cutting-edge chip process nodes (especially 1.8nm/1.4nm-level and subsequent process nodes), covering critical manufacturing layers for storage chips such as DRAM. "In the coming months, we will see the first batch of products, including some HBM/DRAM storage chips and logic chips, exposed on the High-NA lithography machine system," he said at a conference organized by the research institute imec in Antwerp, Belgium. UBS Group AG reignites the "bull market narrative" of ASML Holding NV ADR: target price raised to 1900 euros In the latest research report, UBS Group AG substantially raised the target stock price of this Dutch semiconductor equipment manufacturer, reinstating it as the top pick in the global semiconductor sector, and UBS Group AG raised the stock price of ASML Holding NV ADR from the previous 1600 euros to 1900 euros. Senior analyst Franois-Xavier Bouvignies from UBS Group AG wrote in a report to clients, "Capacity concerns have become a focus, with the market concerned that ASML Holding NV ADR's capacity bottleneck may restrict semiconductor supply. Our analysis shows that by 2027, ASML Holding NV ADR's capacity can support a 50% year-on-year increase in actual output for leading process wafers (including logic and storage), while demand is around 25-30%, but the base is much larger, with about 20% of output increase coming from the underestimated Low NA throughput improvement. While productivity improvements may modestly dilute lithography strength due to the difficulty of keeping pace in other process steps (CMP, HAR etching, hybrid bonding, thin film deposition, etc.), we do not expect ASML Holding NV ADR's capacity to become a bottleneck in the next 12/18 months." Furthermore, Xavier Bouvignies stated that if the strong demand trend for storage chips continues, ASML Holding NV ADR will be one of the biggest beneficiaries. Xavier Bouvignies, analyst at UBS Group AG, added, "Under the constructive outlook for the next two years for HBM/DRAM storage chips, the supply chain is expected to benefitespecially participants benefiting from the rise in WFE intensitydue to node shrinkage driving an increase of approximately 30% in wafer count per wafer (from 1b to 1c), lithography strength improvement, with additional EUV layers expected at the 1d node (2027/2028 expected), driving an additional 1-2 layers. ASML Holding NV ADR is the semiconductor equipment company with the highest exposure in the storage field of the global semiconductor industry (expected to account for 30-35% of revenue by 2026, compared to peers at 25-30%), reflected in a stronger performance growth trajectory (compound annual revenue growth of 23% for storage business between 2020 and 2025, compared to approximately 6%), and an increasing lithography strength expectation trajectory (from 11% in 2020 to about 15% by 2025, and expected to reach about 15-20% by 2027/2028)." Legacy chip manufacturer Intel Corporation (INTC.US) has been one of the most aggressive chip manufacturers preparing for the use of ASML Holding NV ADR's High-NA lithography machine equipment, in an attempt to surpass its long-time competitors Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR and Samsung. In addition, storage chip manufacturers such as SK Hynix have recently expressed their intention to use this new technology to create HBM/DRAM storage chips. From an industry perspective, it is clear that the High-NA entry into DRAM is the way forward. ASML Holding NV ADR has stated that its EUV system supports the production of sub-2nm logic nodes and leading DRAM nodes, making High-NA more likely to be used for key layers in advanced DRAM, supporting higher-density HBM for the AI era with higher bandwidth and lower power consumption. High-NA will be primarily used for a few critical, fine feature spacing graphic layers in advanced DRAM/HBM to improve single exposure resolution, reduce multiple graphic steps, and drive continued shrinkage of higher-density DRAM units. Progress-wise, SK Hynix is one of the clearest advocates for advancing in the direction of DRAM/HBM. Media reports indicate that SK Hynix plans to purchase approximately $7.97 billion worth of EUV equipment from ASML Holding NV ADR for new capacity at locations like Yongin and M15X, aiming to produce HBM and advanced DRAM required for AI; and SK Hynix has already assembled the first commercial High-NA EUV lithography system at its Cheonan M16 facility in South Korea, initially for rapid prototyping of the most advanced HBM/DRAM structures, with transition to mass production in the future. The essence of HBM lies in the stack of multiple DRAM die + TSV + advanced packaging, with each DRAM die layer still relying on the previous DRAM process. As AI requires higher capacity, higher bandwidth, lower power consumption, and as DRAM units, peripheral circuits, bit lines/word lines, metal interconnects, and other key graphic layers continue to shrink, the unique value of High-NA becomes apparent. Its significance lies not in simply "stacking HBM higher," but in enabling higher-density DRAM die, lower power consumption, fewer graphic steps, and a more controllable yield/cost curve, supporting future generations of HBM4E, HBM5, or subsequent iterations. AI-dominated chip demand surpasses capacity! EUV lithography machines at the center of the supply shortage storm Recent dynamics in news surrounding the catalyzing of advanced process AI chips and the expansion of capacity in the storage chip sector can be seen as positive and encouraging for the semiconductor equipment industry. With the global construction of super-large AI data centers led by tech giants such as Microsoft Corporation, Alphabet Inc. Class C, and Meta becoming increasingly heated, this all-encompassing drive is accelerating 3nm and below advanced process AI chip production, as well as CoWoS/3D advanced packaging capacity and DRAM/NAND storage chip production. This scenario is solidifying the long-term bull market logic for the semiconductor equipment sector. Under the AI super wave, advanced process logic chips such as AI GPU/AI ASIC, HBM/DRAM/NAND storage chips, and high-performance chips closely related to AI data center power chains for mature process chips/power and those involving high-performance chips for AI data center internal computing clusters and DCI connectivity are expected to remain in supply-demand balance for the long term. ASML Holding NV ADR will also be one of the core beneficiaries in this major trend of chip supply shortages, as it holds the key equipment for expanding production of advanced chipsthe EUV/DUV lithography systems. Whether it's Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR behind NVIDIA Corporation's ecosystem, or Samsung, SK Hynix, Micron, Intel Corporation, expanding production of advanced logic, HBM/DRAM, and AI computing infrastructure-related chips depends on ASML Holding NV ADR lithography equipment. The first batch of chips manufactured using ASML Holding NV ADR's latest High-NA EUV lithography will soon be introduced, capable of reducing feature sizes by up to 66%, being pushed for adoption by companies like Intel Corporation, Samsung, and SK Hynix; this further reinforces ASML's strategic position in the post-2nm era, AI logic chip manufacturing, and advanced storage production. ASML Holding NV ADR's latest predictions also significantly reinforce the long bull trend logic in the global chip market, as AI data centers, Starlink satellites, physical AISiasun Robot & Automation, autonomous driving, and future mega-chip fabrication projects like TeraFab are expected to expand chip demand beyond just cloud training to a more wide-ranging cloud-based AI inference system, physical AI, and edge AI cloud connection needs. This undoubtedly forms a long-lasting and strong fundamental expansion logic supporting ASML Holding NV ADR, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, SK Hynix, Micron, NVIDIA Corporation, AMD, Intel Corporation, Applied Materials, Lam Research, and other global chip powerhouses. ASML Holding NV ADR's CEO predicts that the global semiconductor market could reach a staggering $1.5 trillion by 2030, compared to the estimated $800 billion market size by 2025.