Does Europe have the world’s most strategic company?
The artificial intelligence revolution has its stars: Nvidia for processors, SK Hynix and Samsung for memory, and TSMC for chip manufacturing. But behind these giants lies a key company on which they all depend. A company – who would have thought it? – from Europe: ASML.
With a market capitalisation estimated at nearly 50 times the earnings per share expected in 2026 according to the Bloomberg consensus, it ranks among the most expensive blue-chip European stocks. Its year-on-year rise of nearly 130 per cent (as at 8 July) places it at the top of the European market capitalisation rankings, currently valued at around 600 billion euros. This is a long way behind the US giants, but well ahead of the rest of the European market.
What is the secret behind this remarkable success? Primarily the fact that its position is unique in the world. Whilst even the tech giants are competing with one another, ASML has built up such a technological lead that it faces no competition for its most advanced products.
Its business is certainly not the simplest: it manufactures the lithography machines used to produce microchips. To do this, it uses a cutting-edge technology known as Extreme Ultraviolet (EUV). However, producing this type of radiation is no mean feat: microdroplets of tin are struck by a laser to create a plasma that briefly reaches a temperature higher than that of the Sun’s surface. This light is then used to etch the world’s most sophisticated electronic components. Without ASML, there would be no latest-generation Nvidia chips, nor advanced production at TSMC, Samsung or Intel. In the global AI gold rush, ASML isn’t selling the pickaxes: it manufactures the machines that, in turn, manufacture the pickaxes.
What is most remarkable is that ASML was not destined to dominate this market. Founded in 1984 as a joint venture between Philips and ASM International, it was merely an outsider compared to the Japanese giants Nikon and Canon. Yet the Dutch company took a colossal gamble: investing in EUV for nearly twenty years, despite the difficulties and the enormous costs. By the time the technology finally reached maturity, ASML’s lead had become virtually impossible to close. Nikon and Canon never managed to get back into the race.
To tell the truth, this success is not just a Dutch one: it is a European one. The ultra-precise optics come mainly from the German firm Zeiss, the high-power lasers from the German firm Trumpf, whilst a dense network of subcontractors is spread across the Netherlands, Germany, Belgium and France. Europe really shines here: industrial cooperation between its companies has made it possible to develop one of the most complex technologies ever created.
Furthermore, ASML’s success is not limited to new machines. A significant proportion of its equipment remains in production for decades. The group thus generates recurring revenue from maintenance, spare parts and upgrades for an installed base that is unique in the industry.
And the story doesn’t end there. ASML is already preparing the next generation of its equipment with the so-called ‘High NA EUV’ machines. Extremely expensive – nearly 400 million euros each, which is more than a modern wide-body aircraft – they will further cement its dominance.
Admittedly, this dominance is not without its risks. The semiconductor market could slow down. Taiwan could come under attack, which would weaken TSMC. Or China could catch up technologically in this field. But in any case, ASML’s lead is unlikely to be challenged for many years to come.
At a time when Europe might seem to be lagging behind in the digital race, trailing the United States, China and South Korea, ASML, a specialist in light technology, stands out as a shining counterexample: no digital revolution is possible without this European star. An inspiring beacon for European industry.
Data as at 9 July 2026
Drafted on 9 July 2026
Alexis Bienvenu, Fund Manager, La Financière de l’Échiquier (LFDE)