Positive Q2 results expected from ASML and other chip equipment makers: Wells Fargo - Seeking Alpha

Wells Fargo expects continued positive performance from chip equipment makers in Q2 2026, particularly highlighting ASML's potential as a catch-up trade due to its underperformance year-to-date. The f... Read original →

Wells Fargo’s upward revision of the WFE forecast signals a structural—not cyclical—expansion in advanced logic and memory capex. ASML’s EUV monopoly makes it the sole enabler for sub-3nm nodes and next-gen DRAM, locking foundries like TSMC and Samsung into non-discretionary spending. This technical choke point forces U.S. rivals like AMAT and KLAC to scramble for High-NA EUV co-development roles. Meanwhile, U.S. export controls—though not directly banning ASML’s DUV tools—inflate global logistics costs through licensing delays and compliance overhead. Over the next 12–24 months, the industry will enter a 'tool-first, capacity-later' tail phase: the $216B WFE projection for 2028 is underpinned by HBM4 ramp, AI chiplet integration, and advanced packaging, not speculation. ASML’s YTD underperformance is a tactical mispricing; its order visibility now stretches into late 2027, far exceeding peers.