ASML shares surge 5.37% on TSMC's $52-56B capex plan boosting AI chip demand

ASML Holding NV shares surged 5.37% in pre-market trading on Jan. 16, 2026, as investors reacted to bullish signals from key clients and the broader AI-driven semiconductor cycle. The Dutch chip equipment maker’s gains were fueled by Taiwan Semiconductor Manufacturing Co.’s (TSMC) revised 2026 capital expenditure plans, which now target $52-$56 billion—a significant increase from prior expectations of $46 billion.

TSMC’s expanded spending reflects robust demand for advanced AI chips, with the foundry citing strong orders for leading-edge process technologies. As the primary supplier of extreme ultraviolet lithography systems critical for next-generation chip production, ASML stands to benefit directly from TSMC’s accelerated factory expansion. Analysts highlight that the spending bump underscores a multi-year growth trajectory for equipment providers, though construction timelines may lag demand.

ASML’s rally aligns with broader sector momentum, as TSMC’s results reinforced confidence in the durability of the AI semiconductor cycle. The company is set to report fourth-quarter earnings on Jan. 28, with recent guidance indicating cautious optimism for 2026. However, TSMC’s updated capital plans have already bolstered expectations for sustained revenue growth into 2027 and beyond.