Key Takeaways
- ASML shares climbed 4% to $1,803.23 following Bernstein’s Buy rating confirmation and upgraded WFE spending projections to $148B for 2026
- Bernstein forecasts wafer fabrication equipment spending could hit $259B by 2028, marking approximately 75% growth over two years
- Intel expanded its equity offering to $20B from $15B, indicating substantial upcoming capital investments in semiconductor manufacturing equipment
- Goldman Sachs recently included ASML on its European Conviction List, reinforcing positive analyst sentiment
- ASML’s extreme ultraviolet lithography order backlog now extends through 2028, with planned 30% capacity expansion in 2027
Shares of ASML surged 4% to $1,803.23 during Tuesday’s morning session, significantly outpacing the broader market’s flat performance, as renewed analyst optimism and Intel’s larger-than-expected capital raise directed investor attention toward semiconductor equipment manufacturers.
The momentum began early in the session. Bernstein confirmed its Buy recommendation on ASML while releasing substantially elevated projections for worldwide wafer fabrication equipment (WFE) spending. The investment firm’s updated forecast calls for approximately $148 billion in WFE expenditures during 2026, escalating to $204 billion in 2027 and reaching $259 billion by 2028.
This trajectory suggests approximately 75% expansion across a two-year period. For an enterprise maintaining virtual monopoly status in extreme ultraviolet lithography technology, such projections carry substantial weight.
ASML concluded U.S. market activity Tuesday with a 3.8% gain at $1,799.38.
Analyst support has been accumulating steadily. A day prior, analyst Scemama maintained a Buy recommendation with an unaltered €2,452 price objective, highlighting ASML’s dominance in lithography technology and its manufacturing throughput development plan. Goldman Sachs had previously elevated the stock to its European Conviction List earlier in the month.
Such concentrated institutional endorsements typically generate significant market interest.
Intel’s Expanded $20B Offering Indicates Strong Equipment Investment
The secondary catalyst emerged from Intel. On Monday evening, Intel announced an increase to its equity offering, expanding it to $20 billion from the initially planned $15 billion. The company is issuing 210.5 million shares priced at $95 apiece.
Intel’s stock declined 4.1% following Monday’s offering announcement, then recovered to close 0.2% higher at $97.71 Tuesday. With year-to-date gains of 165% and 348% appreciation over twelve months, Intel is capitalizing on its elevated valuation.
Market participants interpreted the expanded offering as confirmation that Intel is preparing for significant capital deployment. The chipmaker previously elevated its 2026 capital expenditure guidance above $20 billion during its latest earnings report, increasing from approximately $18 billion, attributing the adjustment to strengthening product demand.
Implications for Equipment Manufacturers
KeyBanc analyst Matt Bryson indicated the capital raise supports Intel’s financing needs for expanding current CPU production capacity alongside future custom ASIC, foundry operations, and advanced packaging requirements. While acknowledging the dilutive impact on current shareholders, he emphasized the positive demand implications for Intel, competitors, and capital equipment providers.
ASML stands as the primary beneficiary considering its exclusive position supplying EUV lithography systems. The company’s order pipeline for these advanced machines extends into 2028. ASML has additionally outlined intentions to increase Low-NA EUV and deep ultraviolet immersion production capacity by 30% during 2027.
Competitor equipment manufacturers registered similar gains. Lam Research advanced 1.64%, KLA Corp appreciated 4.01%, and Applied Materials increased 0.67% during Tuesday’s session.
Intel’s free cash flow is anticipated to remain slightly negative this year, following cumulative negative free cash flow totaling $44 billion spanning 2022 through 2025, per FactSet data.
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