ASML surges to 52-week high after Musk’s Terafab pitch

ASML ↗3.31% shares surged to a 52-week high Wednesday after Elon Musk pitched his Terafab chip facility at the company’s annual tech conference.cnbc
Oracle ↗0.41% revealed capital spending that blew past its own targets, reinforcing expectations for sustained semiconductor equipment demand.reuters
BofA raised its ASML price target, and peers including Intel ↗10.64% and Applied Materials ↗4.08% rallied broadly on AI buildout optimism.yahoo

ASML Shares Surge to 52-Week High After Musk’s Terafab Pitch and Semiconductor Spending Wave

ASML shares climbed roughly 9.5% on Wednesday, closing at $1,899.48 and reaching a new 52-week high, as a confluence of catalysts sent semiconductor equipment stocks sharply higher.stockanalysis

Musk Makes His Case to ASML

The rally was sparked in part by Elon Musk’s virtual appearance at ASML’s annual technology conference, where the SpaceX founder participated in a fireside chat with CEO Christophe Fouquet. Musk used the forum to outline his vision for Terafab, a massive chip fabrication facility planned for Texas that would produce semiconductors for Tesla, SpaceX, and the AI lab xAI.businessinsider

ASML, headquartered in the Netherlands, is the sole global manufacturer of extreme ultraviolet lithography machines essential for advanced chip production and is expected to supply equipment to the Terafab facility. The stock had already risen more than 3% in premarket trading ahead of the event.cnbc

Oracle’s Spending Spree Lifts Equipment Makers

Additional momentum came from Oracle’s fiscal fourth-quarter earnings report on June 10, which revealed capital expenditures of $55.66 billion for fiscal 2026, exceeding its own $50 billion target. The company forecast capex of up to $95 billion for fiscal 2027, underscoring the scale of infrastructure investment flowing into AI-related chip manufacturing.reuters

While Oracle’s own shares fell on concerns about rising expenses, the spending commitments reinforced expectations for robust demand for semiconductor equipment.youtube

Broad Rally Across Chip Equipment Sector

BofA Securities had raised its price target on ASML to EUR 1,921 from EUR 1,710 on June 4, maintaining a Buy rating, citing stronger EUV demand outlook. The bullish sentiment extended across the sector: Intel shares surged, trading between $107.31 and $119.44 on the day, while Applied Materials also posted gains as investors bet that the AI infrastructure buildout will sustain elevated equipment orders for years to come.robinhood

The session marked a turning point for ASML, which had traded below $1,750 as recently as June 10, before the combination of Musk’s public commitment to ASML’s technology and escalating industry capex plans propelled the stock to new heights.yahoo