There is no denying that we are in the middle of an artificial intelligence (AI) supercycle, characterized by persistently strong demand for products and/or services that typically exceeds supply.
From hardware to software, companies across different AI niches are struggling to meet end-market demand. Nvidia, for instance, is looking at a whopping $1 trillion in sales in 2026 and 2027 for its Blackwell and Rubin processors, and it is scrambling to procure enough production capacity to meet the massive customer orders.
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Meanwhile, software specialist Palantir Technologies continues to sign contracts far larger than its revenue. On the other hand, the shortage of memory chips is well documented, with companies such as Micron Technology reportedly selling out their production capacities well in advance.
However, this AI supercycle wouldn’t have been possible without ASML (NASDAQ: ASML). This Dutch company isn’t a household name like the ones mentioned above, but it makes the machines powering the proliferation of AI. Let’s look at the reasons why ASML could be the biggest winner of the AI supercycle.
Significant spending on AI infrastructure, such as data centers and software solutions, will eventually drive ASML’s growth. That’s because it is the only company manufacturing extreme ultraviolet (EUV) lithography machines, which are essential for printing advanced chips based on small process nodes. Smaller process nodes enable chip designers, such as Nvidia, to create processors that are both powerful and power-efficient.
As AI workloads are compute-intensive and power-hungry, the advanced chips manufactured using ASML’s EUV machines are critical to the growth of this technology. Not surprisingly, the Dutch semiconductor equipment giant saw remarkable demand for its machines. It received 28 billion euros worth of bookings last year, up from almost 19 billion euros in 2024.
Bookings refer to the sales orders for which ASML received written authorizations. Importantly, the bookings figure is likely to head higher in 2026 and beyond. That’s because foundry giants such as Taiwan Semiconductor Manufacturing and memory manufacturers such as Micron and SK Hynix are poised to significantly increase their capital expenditures this year.