Semiconductor manufacturing equipment specialist ASML (NASDAQ: ASML) is the largest company on the European stock market. Today, it has a market-cap of around €600bn (£510bn), meaning it’s far bigger than any company in the UK’s FTSE 100 index.
It wasn’t always this big however, and over the last year, its share price has moved significantly higher amid the AI boom. Here’s a look at how much £5,000 invested in the chip powerhouse 12 months ago would be worth now.
Huge gains over the last year
ASML’s listed both in Europe and the US. Focusing on the US listing – where I’m invested – the share price here has risen from $735 to $1,785 over the last year. That translates to a gain of around 143%.
Given that the GBP/USD FX rate is essentially the same as it was a year ago, this means a £5,000 investment a year ago would now be worth about £12,100.
That’s a brilliant return. For reference, the highest return from an individual stock in the FTSE 100 over the last year is about 100%.
This is a great example of why it can pay to look at international opportunities when investing in the stock market. While the UK has some brilliant companies, investors can potentially obtain higher returns by adding some international stocks to their ISAs or Self-Invested Personal Pensions (SIPPs).
Is it too late to consider buying ASML?
Looking ahead, I continue to see a lot of potential here. Because ASML provides – and has a near monopoly in – highly-sophisticated chip manufacturing equipment that’s essential for the production of advanced AI chips.
Assuming the world continues to become more digital, it should do well. The more the global chip industry grows, the more manufacturers like Taiwan Semi and Intel will need its equipment.
It’s worth noting that the company’s Q2 results, posted on 15 July, were very strong. For the quarter, sales came in at €9.3bn versus €7.7bn a year earlier. During the quarter, the company sold 91 of its lithography systems compared to 76 in the prior-year period. This quarter, it expects sales of between €11bn and €12bn, versus €7.5bn for Q3 2025.
Ongoing AI-related investments and continued progress in AI technologies are driving demand for advanced Logic and Memory chips, further strengthening the semiconductor industry’s growth outlook. Our customers, in turn, continue to accelerate their capacity expansion plans.
ASML Q2 results
Consider building a position over time
Having said all that, I wouldn’t consider going ‘all in’ on the chip stock here. That’s because it’s had a great run and looks a little expensive today.
