Commenting on the latest ASML quarterly results, James Bull, technology industry senior analyst, RSM UK said: “ASML reported third quarter revenue of €7.5bn and new orders of €5.4bn, reflecting continued demand for the company’s most advanced chip making equipment. ASML, which makes the machines used to manufacture the semiconductors powering AI, has bounced back to again take the title of Europe’s most valuable public listed company.

“Since ASML’s last quarterly results published in July, the picture for AI hardware investment has strengthened further. Meta, Oracle and OpenAI have all announced major data centre and AI infrastructure projects, signing agreements with AMD, Nvidia, Intel and Samsung, which underlines the growing need for advanced chip manufacturing tools.

“The world’s largest technology firms continue to invest heavily in AI infrastructure, with Microsoft, Meta, Amazon and Google forecast to spend over $400bn on capex in 2026, which will support demand for ASML’s tools, essential for producing high performance AI chips.

“The recently signed UK US Tech Prosperity Deal, worth around £31bn, helps drive wider momentum. Much of the funding focuses on AI and digital infrastructure, including Nvidia’s investment in Nscale’s UK data centre capacity. This will help expand the UK’s computing resources, strengthening its position in global technology supply chains. However, these projects will only deliver meaningful value if the UK can support them with the right people and skills.

“While the current demand for advanced AI chips supports the strong order volumes, the ongoing trade war between the US and China threatens to cause disruption. China’s new tariffs on rare earth metals, critical for components such as magnets and optics used in ASML’s machines, will add additional cost to building AI infrastructure and extend lead times throughout the semiconductor supply chain.”

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