Sands Capital flags ASML as AI raises pressure on chipmaking capacity
The fund says rising AI demand could drive greater requirements for advanced chips, wafer production and lithography systems, while warning capacity may become a long-term constraint.
Sands Capital Global Growth Fund identified ASML Holding as a notable contributor in its second-quarter 2026 investor letter, linking the semiconductor-equipment maker’s prospects to the expanding build-out of artificial intelligence infrastructure.
The fund said stronger AI demand was increasing requirements for advanced DRAM and logic chips. It forecast that lithography capacity could become one of the hardest constraints on scaling AI infrastructure, potentially creating tight supply conditions for years.
Sands Capital’s analysis indicated that both Chinese and non-Chinese fabrication plants may need to materially increase lithography capacity to meet demand for AI chips. ASML supplies lithography systems used by chipmakers to print patterns on silicon wafers.
The fund also said agentic AI could increase data-centre CPU requirements relative to GPUs. It cited some observers who expect the ratio to shift from one CPU for every four to eight GPUs towards one-to-one or higher, although the source did not identify those observers.
Sands Capital said more advanced CPUs and broader AI infrastructure investment could support additional demand for leading-edge logic. Its portfolio returned 22.2% in the quarter, compared with 14.9% for the MSCI All Country World Index, with gains mainly driven by earnings growth in AI infrastructure businesses.
ASML shares closed at US$1,714.88 on 4 September, according to the source article. The stock had gained 115.37% over the preceding 52 weeks, while the company’s reported market capitalisation was US$651.11 billion. These figures are time-sensitive, and the fund’s outlook remains an investment view rather than an established outcome.
