ASML $ASML Holdings ASML has signed a Memorandum of Understanding with Tata Electronics to strengthen India’s semiconductor manufacturing ecosystem. Per the agreement, ASML will support the establishment and ramp-up of Tata Electronics’ upcoming 300 mm (12-inch) semiconductor fabrication facility in Dholera, Gujarat. The collaboration also reflects the growing strategic partnership between India and the Netherlands in critical technologies, particularly semiconductors.
The Dholera fab, backed by a planned investment of nearly $11 billion, is expected to manufacture semiconductors for applications across automotive, mobile devices, artificial intelligence (AI), and other high-growth sectors, serving customers worldwide. As the global leader in lithography systems, ASML will play a crucial role by supplying its advanced deep ultraviolet (DUV) technologies, with the possibility of future deployment of extreme ultraviolet (EUV) systems for more sophisticated chip manufacturing.
The partnership creates a major commercial growth opportunity for ASML as India accelerates efforts to become a global semiconductor manufacturing hub. Amid the ongoing diversification of global semiconductor supply chains, India is emerging as an attractive alternative due to strong government incentives, rising electronics demand, and a vast engineering talent pool. By securing an early presence in India’s semiconductor expansion, ASML positions itself to benefit from equipment sales, long-term service agreements, maintenance revenues and recurring technology upgrades.
What About ASML’s Peers?
KLA Corporation $KLAC KLAC: Its partnerships with leading foundries, chipmakers and equipment providers reinforce KLAC’s leadership in process control and yield management. These collaborations deeply integrate KLA Corporation into semiconductor manufacturing, supporting recurring revenues, strong switching costs, and sustained long-term growth from expanding global chip production.
Applied Materials $AMAT AMAT: Its partnerships with foundries, memory manufacturers, and research institutions reinforce AMAT’s leadership in semiconductor materials engineering and advanced packaging. These collaborations place Applied Materials at the center of next-generation chip manufacturing, supporting recurring revenues, innovation, and long-term growth driven by AI and semiconductor demand.
ASML’s Price Performance
ASML has gained 38% year to date, underperforming the industry.
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ASML’s Expensive Valuation
The stock is undervalued compared with its industry. It is currently trading at a price-to-earnings multiple of 36.43, versus than the industry average of 36.5.
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Upward Estimate Movement for ASML
The Zacks Consensus Estimate for ASML’s second-quarter and third-quarter 2026 EPS witnessed northbound movement in the last 30 days. The same holds true for 2026 and 2027 earnings estimates.
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The consensus estimates for ASML’s 2026 and 2027 revenues and earnings indicate year-over-year increases. ASML stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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KLA Corporation (KLAC): Free Stock Analysis Report
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