ASML shares surge 5.37% on TSMC's revised capex plans boosting sector optimism

ASML Holding NV shares surged 5.37% in pre-market trading on January 16, 2026, driven by renewed optimism in the semiconductor sector following Taiwan Semiconductor Manufacturing Co.’s (TSMC) revised capital expenditure plans. TSMC, ASML’s largest client, announced a 2026 capex budget of $52–56 billion, exceeding market expectations of $46 billion and signaling sustained demand for advanced AI chips.

The spending increase underscores confidence in long-term AI-driven infrastructure growth, with TSMC accelerating factory expansions to meet rising orders from clients like Nvidia and Apple. ASML, the dominant supplier of lithography tools for cutting-edge chip production, stands to benefit from higher equipment demand as TSMC scales its operations. Analysts highlight that TSMC’s guidance reinforces the durability of the AI cycle, with further investment expected in 2027 and beyond.

ASML’s gains align with broader sector strength, as European chip stocks rallied in tandem with TSMC’s results. The company is set to report fourth-quarter earnings on January 28, with investors keenly watching for updates on its 2026 growth trajectory amid tightening supply chains and strategic investments in U.S. manufacturing.

The upcoming earnings report is anticipated to provide clarity on ASML’s order backlog and pricing dynamics, both critical metrics for gauging the company's ability to sustain its growth momentum in the face of global demand fluctuations and rising input costs.