The Dutch ASML (ASML) has become the third European company ever to reach a market value of 500 billion dollars. This milestone comes at a time when the European technology sector is falling further behind American competitors such as Nvidia and Apple.
Yet ASML’s growth spurt also offers hope: the Veldhoven company is well on its way to becoming the driving force behind the European tech industry.
ASML benefits from AI boom and TSMC spending
ASML’s share price rose by more than five percent on Thursday after better-than-expected figures from TSMC, the world’s largest chip manufacturer. The Taiwanese company, one of ASML’s largest customers, increased its capital investments for 2026 to up to $56 billion. This shows that it is fully committed to the growing demand for chips for artificial intelligence.
Investors responded enthusiastically. ASML is the only global manufacturer of advanced EUV machines, which are essential for the manufacture of AI chips. The company’s stock market value increased to around 453 billion euros, equivalent to 500 billion dollars, due to the TSMC news. This makes ASML not only the largest company in Europe, but also the only tech company on the continent that plays among the global top.
European tech is lagging behind
ASML’s performance is in stark contrast to the situation on the American market. Nvidia currently has a market value of more than $4 trillion, making it roughly nine times larger than ASML. Other giants such as Alphabet and Apple also have a multiple market value compared to European companies.
Other European companies that reached 500 billion
Besides ASML, only two other European companies ever reached the magical threshold of $500 billion:
- LVMH – the French luxury brand behind Louis Vuitton, Moët and Dior reached the milestone in April 2023.
- Novo Nordisk – the Danish pharmaceutical giant is known worldwide for popular slimming products such as Ozempic and Wegovy.
Together with ASML they form the absolute top of the European stock exchange giants.
In fact, ASML would not even be in the top 15 largest companies on Wall Street. According to analysts, this is indicative of the faltering innovation power in Europe. OpenAI, still a private company, would already be close in value to ASML and LVMH combined. This means that Europe is in danger of losing track in the global tech race.
What does this mean for the market?
Yet ASML’s success also provides optimism among European investors. “If ASML goes up, it lifts the entire market,” said Barclays strategist Emmanuel Cau. Investors see the share as one of the few ways to benefit from the AI hype in Europe. The rally of ASML, which already rose 24 percent in value in January, comes at a strategic time: at the end of January the company will present its annual figures for 2025.
Analysts expect the wave of investment in AI to continue in the coming years. Chip companies such as Samsung, SK Hynix and Micron are already increasing production capacity. ASML therefore seems assured of a strong order book well into 2027. The question is: can one company take the lead in the European tech sector?
Source: https://newsbit.nl/asml-bereikt-grens-van-500-miljard-dollar-wat-betekent-dit-voor-europa/
