Coatue Management Adds $655m ASML Stake as UBS Names Top European Chip Stock

Billionaire hedge fund manager Philippe Laffont has significantly increased his firm’s exposure to ASML Holding, initiating a major new stake in the Dutch semiconductor equipment manufacturer during the first quarter of 2026. Coatue Management acquired 510,000 shares valued at $655.4 million, a move that coincided with a reduction in its position in Nvidia Corporation. The transaction signals a growing conviction among institutional investors that the next phase of the artificial intelligence arms race will increasingly benefit semiconductor infrastructure leaders rather than chip designers alone.

The investment comes as UBS analysts declared ASML the top chip stock in Europe, citing the company’s dominant position in extreme ultraviolet lithography technology. This equipment is widely regarded as indispensable for producing the cutting-edge AI processors driving the current technology boom. ASML’s monopoly on these critical systems has cemented its status as one of the most strategically important companies in the global technology supply chain, with a market capitalisation of $642.2 billion.

Financial results have reinforced this bullish sentiment. ASML reported strong first-quarter 2026 figures, with revenue rising 13.2 per cent year-on-year to €8.8 billion. Net income increased to €2.8 billion, while earnings per share climbed to €7.15 from €6 in the same period last year. The company also sold 67 new lithography systems during the quarter, with CEO Christophe Fouquet noting that demand for chips is currently outpacing supply.

Following the robust earnings report, ASML raised its full-year 2026 revenue outlook to between €36 billion and €40 billion, up from previous estimates. The company also provided solid second-quarter guidance, forecasting revenue between €8.4 billion and €9.0 billion. This upward revision in guidance reflects continued confidence in AI-driven semiconductor capital spending, despite ongoing concerns regarding export controls and geopolitical risks.

Market reaction has been swift, with ASML shares surging 120.45 per cent over the past 52 weeks. Momentum intensified in late May, with the stock gaining 6.2 per cent on May 20 and a further 2.7 per cent on May 21, driven by reports of tightening semiconductor supply. The stock is currently trading at a premium valuation of 42.91 times forward earnings, supported by a consensus "Strong Buy" rating from analysts who see continued upside from the AI infrastructure boom.