Key Highlights
- ASML shares surged 4% to reach $1,803.23 following Bernstein’s Buy rating reaffirmation and upgraded WFE spending projections of $148B for 2026
- Bernstein’s long-term forecast anticipates WFE expenditures could hit $259B by 2028, marking approximately 75% growth over a two-year period
- Intel expanded its equity offering from $15B to $20B, indicating substantial upcoming capital investments in semiconductor manufacturing equipment
- Goldman Sachs recently placed ASML on its European Conviction List, reinforcing positive market sentiment
- ASML’s EUV machine backlog now extends through 2028, with plans to boost production capacity by 30% in 2027
Shares of ASML climbed 4% to $1,803.23 during Tuesday’s morning session, significantly outperforming the broader market’s flat performance, driven by favorable analyst commentary and Intel’s upsized capital raise that directed investor focus toward semiconductor equipment manufacturers.
The momentum began in pre-market hours. Bernstein maintained its Buy recommendation on ASML while releasing comprehensive updates to its worldwide wafer fabrication equipment (WFE) spending outlook. The investment firm now anticipates approximately $148 billion in WFE expenditures for 2026, escalating to $204 billion in 2027 and reaching $259 billion by 2028.
This trajectory would indicate approximately 75% expansion across a two-year timeframe. For an enterprise maintaining virtual monopoly status in extreme ultraviolet lithography technology, these projections carry substantial weight.
ASML concluded U.S. market activity up 3.8% at $1,799.38.
Analyst confidence has been accumulating steadily. Just one day prior, analyst Scemama maintained a Buy rating with an unaltered ā¬2,452 price objective, highlighting ASML’s lithography dominance and its throughput development trajectory. Goldman Sachs had previously incorporated the stock into its European Conviction List earlier in the month.
Such layered support from several prominent financial institutions typically garners significant market attention.
Intel’s $20B Capital Raise Delivers Strong Market Signal
The additional major development involved Intel. On Monday evening, Intel announced it was enlarging its equity offering to $20 billion, escalating from the initially planned $15 billion. The company is distributing 210.5 million shares priced at $95 apiece.
Intel shares declined 4.1% upon Monday’s offering announcement, but recovered to close up 0.2% at $97.71 on Tuesday. The stock has gained 165% year-to-date and surged 348% across the trailing 12 months, suggesting Intel is capitalizing on its elevated valuation.
Market participants interpreted this maneuver as confirmation that Intel is preparing for significant capital deployment. The corporation previously elevated its 2026 capex projection to exceed $20 billion during its recent quarterly report, increasing from approximately $18 billion, attributed to strengthening product demand.
Implications for Equipment Manufacturers
KeyBanc analyst Matt Bryson indicated the capital raise enables Intel to finance expansion addressing current CPU needs alongside future custom ASIC, foundry, and packaging requirements. He acknowledged the dilution presents a drawback for current shareholders, though the demand indication proves favorable for Intel, industry competitors, and capital equipment providers.
ASML stands as the most direct beneficiary considering its position as the exclusive provider of EUV systems. Its backlog for these sophisticated machines now extends through 2028. The organization has additionally signaled intentions to increase Low-NA EUV and DUV immersion production capabilities by 30% during 2027.
Related equipment manufacturers experienced similar upward movement. Lam Research advanced 1.64%, KLA Corp climbed 4.01%, and Applied Materials increased 0.67% on Tuesday.
Intel’s free cash flow is projected to register modestly negative results this year, following a cumulative negative $44 billion spanning 2022 through 2025, per FactSet data.
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