In his keynote address from GTC 2026 on March 16, Nvidia (NASDAQ: NVDA) CEO Jensen Huang reflected on his previous guidance of $500 billion in purchase orders for Blackwell and Rubin through 2026. Now he sees at least $1 trillion in chip orders for artificial intelligence (AI) by 2027, and he said he has some demand for computing will be much higher than that. Note that these are orders that will be received over a period of several years.
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Earlier this month, Broadcom (NASDAQ: AVGO) CEO Hock Tan predicts $100 billion in revenue by 2027 from AI chips alone.
As a recent Motley Fool study shows, Amazon, Microsoft, AlphabetsGoogle, too Meta Platforms it is expected to reach $600 billion in combined spending by 2026, most of which is towards AI.
This act of using AI would not have happened without it ASML (NASDAQ: ASML).
That’s why ASML could be the first European company to reach $1 trillion in market capitalization, and if bought now.
AI chips are becoming more efficient by using innovations from companies like Nvidia and Broadcom, network optimization and code signing, and new methods like Taiwan Semiconductor Manufacturing‘s (NYSE: TSM) (TSMC) advanced 2-nanometer (N2) process technology. The N2 entered full-scale production in the fourth quarter of 2025.
Technologies such as Nvidia’s Rubin architecture will likely use N2 to improve power efficiency and AI workload efficiency. Pushing the boundaries of semiconductor manufacturing is an asset to ASML.
Semiconductor foundries such as those used by TSMC, Samsung Electronicsagain Intel relies on the most advanced semiconductor equipment in various stages of chip manufacturing, from deposition to lithography, plasma embedding, polishing, metal deposition, and process control solutions.
ASML focuses on the lithography part of this process, which is often considered the most complex. ASML has competitors in deep ultraviolet technology, but has a clear dominance over ultra-violet (EUV) systems, which are primarily used to produce advanced AI chips.
Demand for EUV is increasing, as high-end EUV machines make up a growing percentage of ASML bookings. Its most advanced High NA EUV equipment is still reaching commercial scale, as ASML confirmed revenue for two of these systems in its latest quarter (fourth quarter 2025) compared to 94 units of new lithography systems sold.
ASML and its semiconductor device peers, such as Lam research, Materials Usedagain The KLAbenefit from accelerating the demand for AI chips. ASML has a long growth trajectory as it ramps up delivery of its latest EUV equipment. And it also benefits from recurring revenue from servicing existing equipment — with base maintenance sales accounting for a quarter of total sales by 2025.
ASML is a basic AI stock to build a portfolio around. Double-digit earnings growth for young adults or better could propel ASML to $1 trillion in the next three to five years — considering its market cap is already $540 billion at the time of this writing.
The biggest challenge with ASML is not its business model, but its valuation. ASML sports a price-to-earnings (P/E) ratio of 49.3 and a forward P/E of 39.8 compared to a 10-year median P/E of 35.8. Given its valuable market position in AI, ASML deserves a premium valuation. But it puts pressure on the company to operate, and leaves ASML more vulnerable to the downturn in the AI spending cycle.
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Daniel Foelber holds positions in ASML and Nvidia. The Motley Fool has positions in and recommends ASML, Alphabet, Amazon, Applied Materials, Intel, Lam Research, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has a policy of disclosure.
What If ASML Hits The Next Triple Million? was first published by The Motley Fool
