ASML Holding N.V. develops, produces, markets, sells, and services advanced semiconductor equipment systems for chipmakers. It offers advanced semiconductor equipment systems, including lithography, metrology, and inspection systems. The company also provides extreme ultraviolet lithography systems; and deep ultraviolet lithography systems comprising immersion and dry lithography solutions to manufacture various range of semiconductor nodes and technologies. In addition, it offers metrology and inspection systems, including YieldStar optical metrology systems to assess the quality of patterns on the wafers; and HMI electron beam solutions to locate and analyze individual chip defects. Further, the company provides computational lithography solutions, and lithography systems and control software solutions; and refurbishes and upgrades lithography systems, as well as offers customer support and related services. It operates in Japan, South Korea, Singapore, Taiwan, China, rest of Asia, the Netherlands, rest of Europe, the Middle East, Africa, and the United States. The company was formerly known as ASM Lithography Holding N.V. and changed its name to ASML Holding N.V. in 2001. ASML Holding N.V. was founded in 1984 and is headquartered in Veldhoven, the Netherlands.

ASML appears to be a high-quality but already very expensive business: operating margins and returns on capital remain outstanding, but the market is paying a premium that is noticeably above the industry level. P/E, P/S, P/B, and P/FCF are all significantly above the median, which limits the potential for re-rating and makes the current valuation sensitive to any slowdown in growth. At the same time, the dynamics of revenue, EBITDA, operating profit, and net profit over recent periods are generally positive, while margins remain consistently high, confirming the company’s strong competitive position. ROE, ROA, ROI, and return on tangible equity are at very strong levels and show no signs of deterioration, so the fundamental quality of the business remains high. The debt burden looks comfortable: debt/equity is low, and debt does not appear critical relative to capital and assets, which reduces financial risk. On the other hand, liquidity is not perfect: the quick ratio is below the industry median, and the current ratio is also lower, which calls for caution when assessing short-term resilience. Dividend yield is very low and declining, so the dividend factor contributes little to the investment case. Balance sheet metrics are generally growing, equity is increasing, and assets remain substantial, confirming the scale and stability of the business. However, such high multiples already price in strong expectations for future growth and margins. For an investor, this means the company is fundamentally strong, but the potential for further valuation upside is limited due to the premium price. Therefore, it would be prudent to slightly lower the initial price target while still recognizing the high quality of the business.

ASML Holding N.V. - New York Registry Shares

ASML remains fundamentally strong, but extremely expensive on valuation multiples; high profitability and growth support the investment case, however the premium to the sector limits...

The S&P 500 Index ($SPX) (SPY) today is down -0.18%, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.85%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.23%. September E-mini S&P futures (ESU26) are down -0.25%, and September E-mini Nasdaq futures (NQU26) are down -0.30%.
Stock indexes turned lower today as crude prices surged, and bond yields jumped after President Trump said the US will “hit Iran hard” after a recent attack from Iran that targeted a US base in Jordan. The markets are awaiting the results of the 2-day FOMC meeting that ends early this afternoon, with policymakers expected to keep interest rates unchanged. Also, earnings results from Microsoft and Meta Platforms after today’s close will be looked at to see whether the vast spending behind the buildout of artificial intelligence can deliver adequate returns. The 10-year T-note yield is up +3 bp to 4.63%.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Sep WTI crude oil prices (CLU26) jumped by more than +6% today as the recent lull in hostilities came to an abrupt end after the Islamic Revolutionary Guard Corps (IRGC) said it targeted a US airbase and command center in Jordan with ballistic missiles. The IRGC also claimed to have hit and halted three tankers attempting to transit through the Strait of Hormuz. Meanwhile, the US and Saudi Arabia launched a joint attack on "Iran-aligned terrorists" in Iraq after the IRGC directed them to target US forces and Saudi energy infrastructure.
Tensions remain high in the Middle East as the US maintains its blockade of Iranian oil shipments in the Persian Gulf. Also, diplomatic attempts to reopen the Strait of Hormuz appear to be at an impasse. Iranian Deputy Foreign Minister Gharibabadi said Oman's proposal for a route through the Strait of Hormuz, with 50% under Iran's control and 50% under Oman's, would not address Iran's concerns and that the inbound passage and part of the outbound channel must be entirely under Iran's control.
US MBA mortgage applications fell -6.4% in the week ended July 24, with the purchase mortgage sub-index down -3.6% and the refinancing mortgage sub-index down -9.9%. The average 30-year fixed rate mortgage rose +7 bp to an 11.5-month high of 6.76% from 6.69% the prior week.
The outlook for strong Q2 earnings, which continue this week, is a bullish factor for stocks. The markets are awaiting results from a raft of megacap technology companies this week, including Microsoft and Meta Platforms today, and Amazon.com and Apple on Thursday. Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 170 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 36% chance of a +25 bp rate hike at the conclusion of today’s FOMC meeting.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.48%. China's Shanghai Composite rebounded from a 1-week low and closed up +0.40%. Japan's Nikkei-225 Stock Average fell to a 2.25-month low and closed down -1.49%.
Interest Rates
September 10-year T-notes (ZNU6) today are down -8 ticks. The 10-year T-note yield is up +2.6 bp to 4.633%. T-notes are under pressure today from a +6% surge in crude oil prices, which raises inflation expectations and is hawkish for Fed policy. Also, long liquidation and position evening are weighing on T-notes ahead of the FOMC’s interest rate decision later today.
European government bond yields are moving higher today. The 10-year German bund yield is up +3.2 bp to 3.136%. The 10-year UK gilt yield is up +5.3 bp to 4.997%.
The German Jun import price index eased to 6.1% y/y from 6.8% y/y in May.
The markets are discounting an 88% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Chipmakers and AI-infrastructure stocks are moving lower today, weighing on the broader market. Nebius Group NV (NBIS) is down more than -8% to lead losers in the Nasdaq 100, and Sandisk (SNDK) is down more than -6%. Also, Applied Materials (AMAT) and KLA Corp (KLAC) are down by more than -4%, and NXP Semiconductors NV (NXPI) and ARM Holdings (ARM) are down by more than -3%. In addition, Advanced Micro Devices (AMD), ASML Holding NV (ASML), Micron Technology (MU), Lam Research (LRCX), and Microchip Technology (MCHP) are down more than -2%.
Trucking and freight companies are under pressure today from soaring crude oil prices. ArcBest (ARCB) is down more than -4%, and Old Dominion Freight Line (ODFL) and Saia Inc (SAIA) are down more than -2%. Also, FedEx Freight Holding (FDXF), Knight-Swift Transportation Holdings (KNX), JB Hunt Transport Services (JBHT), Marten Transport Ltd (MRTN), CH Robinson Worldwide (CHRW), and XPO Inc (XPO) are down more than -1%.
Airline stocks are sliding today with the surge in crude oil prices. Alaska Air Group (ALK) and Southwest Airlines (LUV) are down more than -2%, and American Airlines Group (AAL), United Airlines Holdings (UAL), and Delta Air Lines (DAL) are down more than -1%.
Energy producers and service providers are climbing today, with crude oil prices up by more than +6%. ConocoPhillips (COP), Diamondback Energy (FANG), and Valero Energy (VLO) are up more than +3%, and APA Corp (APA), Chevron (CVX), Devon Energy (DVN), ExxonMobil Holdings (XOM), Marathon Petroleum (MPC), Occidental Petroleum (OXY), and Phillips 66 (PSX) are up more than +2%. Also, SLB Ltd (SLB), Baker Hughes (BKR), and Haliburton (HAL) are up more than +1%.
Lennox International (LII) is down more than -13% to lead losers in the S&P 500 after reporting Q2 net sales of $1.55 billion, weaker than the consensus of $1.56 billion.
Vertiv Holdings (VRT) is down more than -8% after reporting Q2 net sales of $3.27 billion, below the consensus of $3.39 billion.
CoStar Group (CSGP) is down more than -8% after reporting Q2 revenue of $925 million, weaker than the consensus of $929.4 million.
Skyworks Solutions (SWKS) is down more than -7% after forecasting Q4 adjusted EPS of $1.27, below the consensus of $1.29.
Avis Budget Group (CAR) is down more than -6% after reporting Q2 EPS of 98 cents, well below the consensus of $1.91.
Caterpillar (CAT) is down more than -2% after Baird downgraded the stock to neutral from outperform, citing a growing trend of state and local government actions targeting data centers, a key growth driver for the company.
Teradyne (TER) is up more than +13% to lead gainers in the S&P 500 and Nasdaq 100 after reporting Q2 net revenue of $1.33 billion, stronger than the consensus of $1.22 billion.
GE Healthcare (GEHC) is up more than +10% after reporting Q2 adjusted EPS of $1.13, better than the consensus of $1.04.
Garmin Ltd (GRMN) is up more than +7% after reporting Q2 revenue of $2.02 billion, above the consensus of $1.92 billion, and raising its full-year revenue estimate to $8.05 billion from a previous estimate of $7.90 billion, stronger than the consensus of $7.99 billion.
Bloom Energy (BE) is up more than +7% after reporting Q2 revenue of $1.07 billion, stronger than the consensus of $838.7 million, and raising its full-year revenue forecast to $3.9 billion to $4.2 billion from a previous forecast of $3.4 billion to $3.8 billion, above the consensus of $3.74 billion.
Generac Holdings (GNRC) is up more than +5% after raising its full-year adjusted Ebitda margin to 20% to 21% from a previous estimate of 18.5% to 19.5%, better than the consensus of 19.2%.
Ford Motor (F) is up more than +4% after raising its full-year adjusted EBIT to $10 billion to $11 billion from a previous forecast of $8.5 billion to $10.5 billion.
Earnings Reports (7/29/2026)
Align Technology Inc (ALGN), American Water Works Co Inc (AWK), Amphenol Corp (APH), Aon PLC (AON), Automatic Data Processing Inc (ADP), Biogen Inc (BIIB), Boston Scientific Corp (BSX), Bunge Global SA (BG), Carvana Co (CVNA), CBRE Group Inc (CBRE), CH Robinson Worldwide Inc (CHRW), Chipotle Mexican Grill Inc (CMG), Cognizant Technology Solutions (CTSH), Electronic Arts Inc (EA), Entergy Corp (ETR), Equinix Inc (EQIX), Essex Property Trust Inc (ESS), Everest Group Ltd (EG), Fair Isaac Corp (FICO), Flex Ltd (FLEX), Fortinet Inc (FTNT), Fortive Corp (FTV), Garmin Ltd (GRMN), GE HealthCare Technologies Inc (GEHC), Generac Holdings Inc (GNRC), General Dynamics Corp (GD), Humana Inc (HUM), IDEX Corp (IEX), Invitation Homes Inc (INVH), Johnson Controls International (JCI), L3Harris Technologies Inc (LHX), Lam Research Corp (LRCX), Lennox International Inc (LII), Masco Corp (MAS), Meta Platforms Inc (META), MGM Resorts International (MGM), Microsoft Corp (MSFT), Mid-America Apartment Communities (MAA), Old Dominion Freight Line Inc (ODFL), O'Reilly Automotive Inc (ORLY), Procter & Gamble Co/The (PG), PTC Inc (PTC), Public Storage (PSA), QUALCOMM Inc (QCOM), Regency Centers Corp (REG), Robinhood Markets Inc (HOOD), Smurfit Westrock PLC (SW), Stanley Black & Decker Inc (SWK), Starbucks Corp (SBUX), Tyler Technologies Inc (TYL), Ventas Inc (VTR), Verisk Analytics Inc (VRSK), Vertiv Holdings Co (VRT), VICI Properties Inc (VICI), Vulcan Materials Co (VMC), Waste Management Inc (WM), WEC Energy Group Inc (WEC).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Pressured by Renewed US-Iran Hostilities

Key Points
Chinese homegrown DUV machines should have little impact on ASML in the years ahead.
The company's Chinese revenue was already set to decline significantly, and it still has a monopoly over the more important EUV technology.
Shares of ASML (NASDAQ: ASML) fell after technology publication The Information reported this week that an unnamed Chinese company backed by the Chinese government has begun manufacturing its own chip-making equipment. However, investors shouldn't be worried, as this is unlikely to hurt ASML's fortunes any time soon.
The machines reportedly being made in China are deep ultraviolet (DUV) lithography machines. This is an older technology used to manufacture older chips and the less critical components of advanced chips. DUV machines are also used to manufacture ordinary DRAM and flash memory. While ASML is a top supplier of DUV machines by a wide margin, it is not the only company that makes these machines. Japanese companies Nikon and Canon also supply them.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
What separates ASML from the pack, though, is that it is the only company in the world with EUV (extreme ultraviolet lithography) technology, which is needed to make advanced logic chips and is also used to make high-bandwidth memory (HBM). These are extremely complex machines, and competitors outside China have largely given up trying to replicate the technology. These are also the machines that drive ASML's growth. EUV machines can cost more than $220 million apiece, while DUV machines can cost as little as $5 million, with higher-end advanced immersion DUV machines running closer to $90 million.
While a loss of DUV sales to China could impact ASML's revenue, the region now accounts for a smaller share of its overall revenue. The company is restricted from selling EUV and advanced DUV machines to China and is only allowed to sell older-technology systems to Chinese companies. As such, only about 14% of its sales came from the country last quarter. Meanwhile, there was already a bill in Congress set to prevent ASML from selling or servicing machines for the first three Chinese companies expected to receive these homegrown DUV machines, so this revenue was likely to be cut off regardless.
A big AI chip and memory beneficiary
With a monopoly on EUV machines and a leading position with DUV machines, ASML is riding both the AI chip and memory booms. The company is set to increase its own EUV capacity by 30% both this year and next, and likely in 2028 as well, setting the stage for strong growth in the years ahead.
It has also developed a next-generation technology, called High NA EUV, that will help advance chip technology even further. While foundries are currently balking at these machines' $400 million price tag, they will eventually be needed, adding another growth driver.
With the AI chip and HBM markets surging, picking up this leading AI stock on this dip could be a smart move.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $510,315!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $64,213!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $379,662!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of July 29, 2026.
Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Threat Out of China Creeps Up on ASML: Is the Dip in the Stock Worth Buying?

Key Points
Traders are selling volatile chip stocks and buying more stable investments.
Dividend stocks can add ballast to your portfolio.
Previously high-flying semiconductor stocks have plunged in recent days. Intensifying competition from Chinese chipmakers and mounting concerns that artificial intelligence (AI)-related spending may not produce its promised returns are prompting investors to seek shelter in more defensive businesses.
That's driving up the prices of dividend stocks like Kroger (NYSE: KR), Verizon (NYSE: VZ), and Costco Wholesale (NASDAQ: COST), all of which saw gains of roughly 2% on Tuesday.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Shifting to defense
Companies like Alphabet are being punished for stepping up their capital expenditures, as investors grow increasingly impatient with the ballooning spending plans of hyperscalers and other tech giants.
At the same time, tech leaders like ASML Holding, with competitive moats once thought to be unassailable, are facing new threats from upstarts in China and elsewhere.
In turn, investors who were previously gung-ho on AI stocks are now moving to dial back risk. That's leading many of them to more defensive dividend stocks.
3 dividend stocks to consider for your portfolio
Costco's shares are up 13% so far in 2026. In today's inflationary economic environment, the warehouse store leader's well-curated merchandise, low prices, and treasure hunt-style shopping experience are resonating with bargain-focused shoppers.
Verizon's flat-rate unlimited mobile plans and bundled wireless and internet offerings are helping it win more subscribers. The telecom titan's free cash flow is up 16% in the first half of 2026, and its shares are up 19% so far this year.
Kroger benefits as people choose to dine at home rather than at restaurants. The grocery giant is cutting prices to boost sales. That's weighing on its margins. But with its shares down 6% in 2026 and trading at about 11 times forward earnings projections, Kroger's stock is approaching bargain territory.
Should you buy stock in Kroger right now?
Before you buy stock in Kroger, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kroger wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,206,116!*
Now, it’s worth noting Stock Advisor’s total average return is 886% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Alphabet, and Costco Wholesale. The Motley Fool recommends Kroger and Verizon Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Costco, Verizon, Kroger, and Other Safe Dividend Stocks Are Rising

Key Points
Intel is caught in a global chip-sector sell-off that has pushed semiconductor stocks more than 20% below recent highs.
Growing doubts about whether massive AI infrastructure spending will generate real returns are fueling investor anxiety across the chip industry.
Shares of Intel Corporation (NASDAQ: INTC) were down 5.6% as of 2:55 p.m. ET Tuesday. The S&P 500 gained 0.3% while the Nasdaq Composite was down 0.1%.
Intel stock is caught in a sectorwide sell-off that has stretched across Asia, Europe, and the U.S.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
The sell-off is being fueled by fresh doubts about whether the money going into AI infrastructure will ever earn a return, as well as a Federal Reserve decision this week that some think could surprise investors.
Why chip stocks have fallen into a bear market
Chip stocks were setting records just weeks ago, but now sit more than 20% below those highs, putting the sector in a bear market.
Much of this is fueled by anxieties around AI spending. Investors are increasingly wary of the enormous sums being spent on AI data centers and are questioning whether the massive capex will translate to real returns -- and if they do, when.
Nvidia fell nearly 5% on Monday and lost its spot as the world's most valuable public company to Apple the same day.
China's lithography breakthrough is spooking investors
Additionally, a Chinese state-backed company has reportedly begun mass-producing an immersion DUV lithography tool -- the critical machines that print circuit patterns onto silicon wafers. The market has been functionally monopolized by ASML, and the report spooked investors, wondering what it could mean for chipmakers downstream of ASML, including Intel.
The Fed's rate decision adds to the uncertainty
Sitting on top of all this is the Fed's rate decision on Wednesday. Under the new Chair, Kevin Warsh, investors are more in the dark than they are used to, and some key players, including Citadel Securities, believe a rate hike is in store.
Is Intel stock a buy right now?
I do believe in Intel long term, but I think the stock has run a bit too far and things are too rocky at the moment for my taste. I would wait to see how things play out.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $510,315!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $64,213!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $379,662!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of July 28, 2026.
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Intel, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Intel Stock Just Fell Again

Key Points
The memory shortage and the need for advanced chips used in data centers, smartphones, and computers should ensure solid demand for ASML's semiconductor equipment.
The Dutch company's growth rate is on track to pick up in 2026, with strong growth over the next couple of years as well.
ASML's robust earnings growth suggests that the stock could jump substantially from current levels over the next three years.
ASML Holding (NASDAQ: ASML) is one of the most important semiconductor companies in the world, as it manufactures advanced chipmaking equipment that's used by foundries and memory companies to fabricate cutting-edge chips.
ASML's extreme ultraviolet (EUV) lithography machines help customers produce chips with high transistor density, resulting in higher computing power and lower power consumption. These leading-edge chips are 7 nanometers (nm) or smaller. It is worth noting that chip designers and consumer electronics companies have been using advanced 5nm and 3nm process nodes to fabricate chips deployed in artificial intelligence (AI) data centers, smartphones, personal computers (PCs), and even gaming consoles.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
As ASML is the only manufacturer of EUV lithography machines, it is witnessing solid demand for its products. The company released its second-quarter results earlier this month, and they clearly indicate that it is poised to deliver years of solid growth.
Let's look at the reasons why this semiconductor stock seems primed to deliver solid upside over the next three years, potentially hitting a $3,000 price during this period.
ASML's addressable market will expand rapidly
ASML's Q2 revenue increased 21% year over year to 9.3 billion euros. It sold 86 new lithography systems during the quarter, up from 67 in the year-ago period. The company's earnings per share increased by an impressive 28% year over year to 7.59 euros per share.
The company's sales exceeded the higher end of its guidance range, driven by the growing demand for its advanced chipmaking equipment that's used for making AI chips. Importantly, ASML sees continued investments in advanced chipmaking capacity to support the AI infrastructure build-out. CEO Christophe Fouquet noted on the latest earnings call:
In logic, there is a continued investment, not only to enable the expansion of 3 nm capacity in support of the latest generation of AI accelerators, but also at both the 5 nm and the 4 nm nodes to support the diverse set of chips required by AI product. At the same time, the 2 nm node continues to ramp rapidly to support next generation HPC and mobile applications.
Fouquet added that its customers are planning to invest in even more advanced 1.4 nm chip nodes. As a result, the company expects its foundry-related revenue to increase by 25% in 2026. On the other hand, ASML is capitalizing on the memory supply crunch. The company notes that its memory customers are on track to significantly expand their production capacity in 2026 to fill the supply gap in the memory industry.
ASML notes that memory infrastructure expansion will continue beyond 2026. That's not surprising, as South Korean semiconductor giants SK Hynix and Samsung are expected to spend a whopping $870 billion in capex over the next decade to build more manufacturing capacity. ASML sees a 75% jump in memory-related sales this year, and it can continue experiencing impressive growth in this segment over the long run as memory manufacturers bring additional capacity online.
All this explains why ASML has increased its 2026 revenue guidance to a range of 43 billion euros to 45 billion euros. That's well above the company's revenue forecast of 34 billion euros to 39 billion euros at the beginning of the year. The midpoint of the current revenue guidance suggests that ASML's revenue is on track to increase by 35% this year, well above the 15% growth it reported last year.
The discussion above suggests that ASML can sustain this impressive growth beyond 2026. Industry association SEMI forecasts a 23% increase in sales of semiconductor manufacturing equipment in 2026 to $166 billion. It expects this market's revenue to increase to $229.5 billion in 2028. So, it is easy to see why analysts have increased their revenue growth expectations from ASML following its latest quarterly report.
The math behind ASML's $3,000 price target
The Dutch semiconductor bellwether's robust top-line growth will filter down to its bottom line as well. Consensus estimates project a 53% jump in ASML's earnings per share in 2026, followed by solid double-digit gains in 2027 and 2028.
However, the build-out of additional chipmaking capacity can help this semiconductor stock exceed expectations. However, even if ASML's earnings per share increase to $75.08 in 2028 and it trades at 40 times earnings at that time (in line with its forward price-to-earnings ratio), its stock price could jump to just over $3,000.
A forward earnings multiple of 40 seems conservative when we consider that the iShares Semiconductor ETF, an exchange-traded fund that tracks the semiconductor sector, has a price-to-earnings ratio of nearly 70. A $3,000 stock price suggests that ASML could jump 81% from current levels, which is why it seems like a good idea to buy this AI stock and hold it for the long run following its 10% slide in July.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $510,315!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $64,213!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $379,662!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of July 28, 2026.
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML and iShares Trust-iShares Semiconductor ETF. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Prediction: ASML Stock Is Going to $3,000 in 3 Years

The S&P 500 Index ($SPX) (SPY) on Monday closed up +0.02%, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +0.51%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.32%. September E-mini S&P futures (ESU26) rose +0.02%, and September E-mini Nasdaq futures (NQU26) fell -0.33%.
Stock indexes settled mixed on Monday, with the Dow Jones Industrial Average posting a 1-week high and the Nasdaq 100 falling to a 2.5-month low. The weakness in chipmakers and AI-infrastructure stocks on Monday weighed on the Nasdaq 100 and limited gains in the broader market. Investors rotated out of semiconductor and AI-infrastructure stocks on Monday and into beaten-down sectors, such as software.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks initially jumped on Monday after the US and Iran held off on attacks for a third straight day, easing geopolitical risks, pushing crude oil prices sharply lower, and helping lift global stock and bond markets. On Sunday, Mike Waltz, US ambassador to the United Nations, said the US is giving diplomacy “some space.” The plunge in crude oil prices on Monday knocked the 10-year T-note yield down -4 bp to 4.64%.
Monday’s US economic news showed strength in the economy and is supportive of stocks after US Jun capital goods new orders nondefense ex-aircraft, a proxy for capital spending, rose +0.9% m/m, stronger than expectations of +0.7% m/m.
Sep WTI crude oil prices (CLU26) plunged by more than -7% on Monday as tensions eased in the Middle East after the US held off against further airstrikes on Iran for a third straight day and Iran signaled it was refraining from any retaliation as it held negotiations with Oman over the Strait of Hormuz.
However, tensions remain high in the Middle East as the US maintains its blockade of Iranian oil shipments in the Persian Gulf and President Trump raised the possibility of intensified action against Iran. Also, Houthi militants in Yemen claimed to have struck facilities linked to Saudi Aramco in the Red Sea port towns of Jizan and Yanbu on Saturday. Yanbu, the western end of the East-West pipeline, has become Saudi’s key crude export outlet since the Strait of Hormuz has effectively been shut off by the war. Jizan is home to a refinery and export terminal along the Red Sea.
The outlook for strong Q2 earnings, which continue this week, is a bullish factor for stocks. The markets are waiting for results from a raft of megacap technology companies this week, including Amazon.com, Meta Platforms, and Microsoft. Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 135 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 38% chance of a +25 bp rate hike at the next FOMC meeting on Tue/Wed.
Overseas stock markets settled higher on Monday. The Euro Stoxx 50 climbed to a 2.5-week high and closed up +0.02%. China's Shanghai Composite closed up +1.15% on Friday. Japan's Nikkei-225 Stock Average closed up +0.50%.
Interest Rates
September 10-year T-notes (ZNU6) on Monday closed up +8 ticks. The 10-year T-note yield fell -3.6 bp to 4.641%. T-notes moved higher amid Monday’s -7% plunge in crude oil prices, which eased inflation expectations. The 10-year breakeven inflation rate fell to a 1-month low of 2.201% on Monday. Weak demand for the Treasury’s $70 billion auction of 5-year T-notes limited gains in T-notes as the auction had a bid-to-cover ratio of 2.28, below the 10-auction average of 2.35 and the lowest in 3.75 years.
European government bond yields moved lower on Monday. The 10-year German bund yield fell -3.9 bp to 3.133%. The 10-year UK gilt yield fell -3.5 bp to 4.997%.
The German Jul IFO business confidence index rose +0.9 to a 5-month high of 86.6, stronger than expectations of 86.0.
ECB Governing Council member Peter Kazimir said "he remains of the view that the ECB will have to raise interest rates at least one more time" to ensure that inflation risks don't spin out of control.
The markets are discounting an 88% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Chipmakers and AI-infrastructure stocks retreated on Monday, weighing on the broader market. The iShares Semiconductor ETF (SOXX) fell to a 1-week low and closed down more than -2%. Sandisk (SNDK) closed down more than -12% to lead losers in the S&P 500 and Nasdaq 100, and Advanced Micro Devices (AMD) and ASML Holding NV (ASML) closed down more than -5%. Also, Western Digital (WDC), Lam Research (LRCX), and Seagate Technology Holdings Plc (STX) closed down more than -4%, and Micron Technology (MU), Applied Materials (AMAT), and KLA Corp (KLAC) closed down more than -3%. In addition, Marvell Technology (MRVL) closed down more than -2%.
Energy producers and service providers moved lower on Monday amid the -7% decline in crude oil prices. Devon Energy (DVN), Diamondback Energy (FANG), and Occidental Petroleum (OXY) closed down more than -4%, and APA Corp (APA), ConocoPhillips (COP), and Haliburton (HAL) closed down more than -3%. Also, Chevron (CVX) closed down more than -2%, and ExxonMobil Holdings (XOM) and SLB Ltd (SLB) closed down more than -1%.
Software stocks rallied on Monday, a supportive factor for the overall market. Atlassian (TEAM) closed up more than +10%, and Workday (WDAY) closed up more than +9% to lead gainers in the S&P 500. Also, Thomson Reuters (TRI) closed up more than +8%, and Autodesk (ADSK) and Palantir Technologies (PLTR) closed up more than +7%. In addition, ServiceNow (NOW) closed up more than +6%, and Salesforce (CRM) closed up more than +6% to lead gainers in the Dow Jones Industrials. Finally, Adobe (ADBE) closed up more than +5%, Oracle (ORCL) closed up more than +4%, Intuit (INTU) and Datadog (DDOG) closed up by more than +2%, and Microsoft (MSFT) closed up by more than +1%.
Airline stocks and cruise line operators moved higher on Monday after crude oil prices plunged more than -7%. American Airlines Group (AAL), Carnival (CCL), Norwegian Cruise Line Holdings (NCLH), and Royal Caribbean Cruises (RCL) closed up more than +3%, and Alaska Air Group (ALK) closed up more than +2%. Also, United Airlines Holdings (UAL) and Delta Air Lines (DAL) closed up more than +1%, and Southwest Airlines (LUV) closed up +0.67%.
CH Robinson Worldwide (CHRW) closed down more than -6%, adding to last Friday’s -9% plunge, to lead trucking and freight companies lower after a Dallas jury awarded $604 million in compensatory damages against the company and two other defendants for a verdict related to a trucking accident. Also, FedEx Freight Holding Company (FDXF) and Marten Transport (MRTN) closed down more than -4%, and Arcbest (ARCB) closed down more than -3%. In addition, Old Dominion Freight Line (ODFL), Knight-Swift Transportation (KNX), JB Hunt Transport (JBHT), and XPO Inc (XPO) closed down more than -2%.
MapLight Therapeutics (MPLT) closed down more than -71% after posting results from a mid-stage trial of its experimental therapy to treat schizophrenia, which Stifel said did not meet the “upside case” scenario.
Nvidia (NVDA) closed down more than -4% to lead losers in the Dow Jones Industrials after announcing it had made a “substantial” investment in AI startup Safe Superintelligence.
Forte Biosciences (FBRX) closed up more than +39% after Argenx SE agreed to buy the company for about $2.2 billion, or $77 a share.
D-Wave Quantum (QBTS) closed up more than +20% after Benchmark Company LLC reinstated coverage on the stock with a recommendation of buy and a price target of $30.
IonQ (IONQ) closed up more than +9% after Benchmark Company LLC reinstated coverage on the stock with a recommendation of buy and a price target of $60.
Baker Hughes (BKR) closed up more than +6% after reporting Q2 revenue of $6.74 billion, better than the consensus of $6.51 billion.
Rocket Lab Corp. (RKLB) closed up more than +4% after KGI Securities upgraded the stock to outperform from neutral with a price target of $107.
Earnings Reports (7/28/2026)
American Tower Corp (AMT), Arch Capital Group Ltd (ACGL), Armstrong World Industries Inc (AWI), Avis Budget Group Inc (CAR), Axalta Coating Systems Ltd (AXTA), Axis Capital Holdings Ltd (AXS), Bloom Energy Corp (BE), Boeing Co/The (BA), BXP Inc (BXP), Caesars Entertainment Inc (CZR), Carrier Global Corp (CARR), Centene Corp (CNC), CenterPoint Energy Inc (CNP), Chemed Corp (CHE), CMS Energy Corp (CMS), Coca-Cola Co/The (KO), Corning Inc (GLW), CoStar Group Inc (CSGP), Crane Co (CR), DTE Energy Co (DTE), Ecolab Inc (ECL), Enphase Energy Inc (ENPH), ExlService Holdings Inc (EXLS), Expand Energy Corp (EXE), Extra Space Storage Inc (EXR), FirstEnergy Corp (FE), Ford Motor Co (F), HF Sinclair Corp (DINO), Hilton Worldwide Holdings Inc (HLT), Hubbell Inc (HUBB), Illinois Tool Works Inc (ITW), Incyte Corp (INCY), Invesco Ltd (IVZ), IQVIA Holdings Inc (IQV), KLA Corp (KLAC), Landstar System Inc (LSTR), Liberty Live Holdings Inc (LLYVA), Manhattan Associates Inc (MANH), Mondelez International Inc (MDLZ), NOV Inc (NOV), NXP Semiconductors NV (NXPI), Omnicom Group Inc (OMC), Oshkosh Corp (OSK), PACCAR Inc (PCAR), PayPal Holdings Inc (PYPL), Pentair PLC (PNR), PPG Industries Inc (PPG), Qorvo Inc (QRVO), Repligen Corp (RGEN), Rithm Capital Corp (RITM), Royal Caribbean Cruises Ltd (RCL), S&P Global Inc (SPGI), Seagate Technology Holdings PL (STX), Sherwin-Williams Co/The (SHW), Skyworks Solutions Inc (SWKS), STAG Industrial Inc (STAG), Teradyne Inc (TER), Textron Inc (TXT), TransUnion (TRU), United Parcel Service Inc (UPS), Unum Group (UNM), Veralto Corp (VLTO), Visa Inc (V), WP Carey Inc (WPC), Xylem Inc/NY (XYL).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Settle Mixed as AI Angst Offsets Easing Geopolitical Tensions

Key Points
A tech publication reported that China will produce its own DUV machines this year.
The implication is a potential competitive threat to ASML, which dominates lithography.
However, a closer look at the report and ASML's current demand makes the fears seem way overblown.
Shares of ASML Holdings (NASDAQ: ASML) fell on Monday, plunging as much as 8.2%, before recovering to a 6.7% decline as of 2:30 p.m. EDT.
The news has been terrific for ASML as of late, with the stock running up over 75% at one point in late June, and its valuation exceeding 60 times earnings.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
That kind of run-up leaves even the best stocks vulnerable to a pullback at the slightest hint of negative news. And investors got a negative rumor today from tech publication The Information, which reported that China is beginning to make machines that will compete with ASML's.
China to "mass-produce" DUV machines?
Today, The Information reported that China has begun manufacturing its own deep-ultraviolet lithography (DUV) machines. The report cited that the machines had been built by an unnamed, state-backed Chinese company.
ASML dominates the lithography market; however, it should be noted that DUV machines aren't the most advanced technology ASML produces. Those are extreme ultraviolet lithography (EUV) machines, which are far more expensive, and from which China is prohibited from buying altogether. The U.S. also recently restricted the sale of certain advanced DUV machines to China, as Chinese semiconductor production and AI capabilities have increased.
But the fear seems way overblown
Investors may have sold ASML and other semiconductor stocks on the headline, given that ASML still has a fair amount of sales coming from China and DUV systems. However, that number isn't as large as it once was. DUV sales as a percentage of overall sales have decreased from 44% in 2024 to 42% in 2025 to just 29% last quarter, as EUV sales have grown as a percentage of ASML's business. The same goes for sales to China, which were 41% in 2024, 33% in 2025, but just 14% last quarter. These trends are likely to continue.
Additionally, there is now a much greater demand for DUV systems from chipmakers outside China, driven by the AI boom that has boosted demand for all types of chips and chipmaking equipment. According to the Information, the new Chinese equipment venture will only produce five machines this year and will target 20 next year. That compares with ASML's current annual capacity of 130 DUV immersion machines, which ASML management said it is looking to increase by 30% in 2027 and possibly another 30% in 2028 to meet stepped-up AI demand.
Therefore, this report of a new Chinese "competitor" doesn't seem like much of a threat to ASML, at least for the next several years, making the sell-off a decent buying opportunity in ASML stock for those with a long-term investing horizon.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $537,140!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $63,471!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $377,990!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of July 27, 2026.
Billy Duberstein and/or his clients have positions in ASML. The Motley Fool has positions in and recommends ASML. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why ASML Holdings Plunged Today

Key Points
The Dow held a 0.2% gain at midday while the S&P 500 and Nasdaq turned negative.
Chinese semiconductor news triggered a broad chip selloff, dragging Nvidia, AMD, and Micron lower.
Four Magnificent Seven earnings reports this week will test investor confidence in AI spending.
Wall Street woke up in a good mood on Monday. Oil prices were tumbling on news of a U.S.-Iran ceasefire, and all three major indexes opened solidly higher. By midday, that optimism had largely evaporated.
The Dow Jones Industrial Average (DJINDICES: ^DJI) was clinging to a 0.2% gain at 12:06 p.m. ET, down from an early peak of 1.3%. The S&P 500 (SNPINDEX: ^GSPC) had slipped 0.2% into the red after starting the day up 0.9%. The Nasdaq Composite (NASDAQINDEX: ^IXIC) was off 0.5%, having completely erased its 1.1% opening pop.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Oil plunges, chips sink
Brent crude dropped approximately 6% to around $86.40 per barrel after the U.S. and Iran agreed to pause military strikes while diplomatic talks resume. Lower oil means less inflation pressure, which means the Fed might ease up on rate hikes. Treasury yields dipped accordingly.
On the downside, China's semiconductor industry picked today to flex.
ChangXin Memory Technologies (CXMT) went public in Shanghai and promptly became China's most valuable listed company, with a valuation near $490 billion. Meanwhile, a Shanghai firm has started mass-producing DUV lithography machines. That's the kind of equipment ASML Holding (NASDAQ: ASML) has had a near-monopoly on for years, and ASML shares dropped more than 7% on the news.
The resulting semiconductor sell-off was broad and ugly. Nvidia fell 4.3%, AMD SK Hynix sank 8.5%, and Micron Technology lost roughly 5%. The companies didn't exactly do anything wrong. Market makers just decided to take down their lofty valuations a bit in light of the Chinese chip news.
The mega-cap software and services stocks counterbalanced the semiconductor drops. Microsoft (NASDAQ: MSFT) rose 2.3%, Alphabet (NASDAQ: GOOGL) added 2.8%, and Apple gained 1.3%. On the Dow, Caterpillar (NYSE: CAT) was the biggest drag, down 4.6% and 243 Dow points.
The week gets interesting from here
Stop me if you've heard this before, but the week ahead could get bumpy.
The Fed announces its next rate decision on Wednesday, and there's a real chance of a hike. Then come a bunch of Magnificent 7 earnings: Microsoft and Meta Platforms report on Wednesday, followed by Apple and Amazon on Thursday.
Those reports will provide concrete data on AI infrastructure spending at a time when investors are questioning whether the returns justify the costs. The semiconductor stocks getting hammered today are the same ones that need big tech to keep writing big checks. After Alphabet's disappointing report last week, the stakes are high.
For long-term investors, weeks like this are useful precisely because they're uncomfortable. Volatility shakes out weak hands and creates better entry points. The real question is whether you're ready to act when everyone else is panicking.
Should you buy stock in NASDAQ Composite Index right now?
Before you buy stock in NASDAQ Composite Index, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and NASDAQ Composite Index wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
Now, it’s worth noting Stock Advisor’s total average return is 896% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 27, 2026.
Anders Bylund has positions in Alphabet, Amazon, Micron Technology, and Nvidia. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Alphabet, Amazon, Apple, Caterpillar, Meta Platforms, Micron Technology, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Dow Jones Holds Gains While S&P 500 Turns Negative on Semiconductor Weakness

The S&P 500 Index ($SPX) (SPY) today is up +0.11%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.54%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.46%. September E-mini S&P futures (ESU26) are up +0.11%, and September E-mini Nasdaq futures (NQU26) are down +0.40%.
Stock indexes gave up early gains today and are trading mixed, with the Nasdaq 100 falling to a 2.5-month low. The weakness in chipmakers is weighing on the broader market as investors rotate out of semiconductor and AI-infrastructure stocks and into beaten-down sectors, such as software.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks initially jumped today, with the Dow Jones Industrial Average posting a 1-week high after the US and Iran held off attacks on one another for a third straight day, easing geopolitical risks, pushing crude oil prices down sharply, and helping lift global stock and bond markets. On Sunday, Mike Waltz, US ambassador to the United Nations, said the US is giving diplomacy “some space.” The plunge in crude oil prices today has knocked the 10-year T-note yield down -3 bp to 4.65%.
Today’s US economic news shows strength in the economy and is supportive of stocks after US Jun capital goods new orders, nondefense ex-aircraft, rose +0.9% m/m, stronger than expectations of +0.7% m/m.
Sep WTI crude oil prices (CLU26) are down more than -6% today, as tensions eased in the Middle East after the US held off against further airstrikes on Iran for a third straight day and Iran signaled it was refraining from any retaliation as it held negotiations with Oman over the Strait of Hormuz.
However, tensions remain high in the Middle East as President Trump has raised the possibility of intensified action against Iran. Also, Houthi militants in Yemen claimed to have struck facilities linked to Saudi Aramco in the Red Sea port towns of Jizan and Yanbu on Saturday. Yanbu, the western end of the East-West pipeline, has become Saudi’s key crude export outlet since the Strait of Hormuz has effectively been shut off by the war. Jizan is home to a refinery and export terminal along the Red Sea.
The outlook for strong Q2 earnings, which continue this week, is a bullish factor for stocks. The markets are waiting for results from a raft of megacap technology companies this week, including Amazon.com, Meta Platforms, and Microsoft. Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 135 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 38% chance of a +25 bp rate hike at the next FOMC meeting on Tue/Wed.
Overseas stock markets are higher today. The Euro Stoxx 50 climbed to a 2.5-week high and is up +0.39%. China's Shanghai Composite closed up +1.15% on Friday. Japan's Nikkei-225 Stock Average closed up +0.50%.
Interest Rates
September 10-year T-notes (ZNU6) today are up +5 ticks. The 10-year T-note yield is down -2.4 bp to 4.653%. T-notes are moving higher amid today’s -6% plunge in crude oil prices, which eases inflation expectations. The 10-year breakeven inflation rate fell to a 3-week low of 2.221% today. Supply pressures are limiting the upside in T-notes as the Treasury will auction $183 billion of T-notes today and tomorrow, beginning with a $69 billion auction of 2-year T-notes and a $70 billion auction of 5-year T-notes later today.
European government bond yields are moving lower today. The 10-year German bund yield is down -4.6 bp to 3.126%. The 10-year UK gilt yield is down -4.9 bp to 4.983%.
The German Jul IFO business confidence index rose +0.9 to a 5-month high of 86.6, stronger than expectations of 86.0.
ECB Governing Council member Peter Kazimir said "he remains of the view that the ECB will have to raise interest rates at least one more time" to ensure that inflation risks don't spin out of control.
The markets are discounting an 89% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Chipmakers and AI-infrastructure stocks are falling today, weighing on the broader market. The iShares Semiconductor ETF (SOXX) is down more than -3% at a 1-week low. Sandisk (SNDK) is down more than -11% to lead losers in the S&P 500 and Nasdaq 100, and Advanced Micro Devices (AMD) and Western Digital (WDC) are down more than -6%. Also, Lam Research (LRCX), ASML Holding NV (ASML), Micron Technology (MU), Applied Materials (AMAT), and Seagate Technology Holdings Plc (STX) are down more than -5%, and KLA Corp (KLAC) is down more than -4%. In addition, Marvell Technology (MRVL) is down more than -3%, and Intel (INTC) and Microchip Technology (MCHP) are down more than -2%.
Energy producers and service providers are sliding today amid the -6% decline in crude oil prices. ConocoPhillips (COP), Devon Energy (DVN), Diamondback Energy (FANG), and Occidental Petroleum (OXY) are down more than -2%. Also, Haliburton (HAL), APA Corp (APA), ExxonMobil Holdings (XOM), and Chevron (CVX) are down more than -1%.
MapLight Therapeutics (MPLT) is down more than -64% after posting results from a mid-stage trial of its experimental therapy to treat schizophrenia, which Stifel said did not meet the “upside case” scenario.
Nvidia (NVDA) is down more than -4% to lead losers in the Dow Jones Industrials after announcing it had made a “substantial” investment in AI startup Safe Superintelligence.
Software stocks are rallying today, a supportive factor for the overall market. Workday (WDAY) is up more than +8% to lead gainers in the S&P 500 and Nasdaq 100, and Atlassian (TEAM) is up more than +7%. Also, Autodesk (ADSK) and Oracle (ORCL) are up more than +5%, and Salesforce (CRM) is up more than +4% to lead gainers in the Dow Jones Industrials. In addition, Adobe (ADBE) is up more than +4%, and ServiceNow (NOW), Palantir Technologies (PLTR), and Intuit (INTU) are up more than +3%. Finally, Microsoft (MSFT) is up by more than +2%, and Datadog (DDOG) is up by more than +1%.
Airline stocks and cruise line operators are climbing today with the -6% plunge in crude oil prices. Alaska Air Group (ALK), Carnival (CCL), and Norwegian Cruise Line Holdings (NCLH) are up more than +2%. Also, United Airlines Holdings (UAL), American Airlines Group (AAL), and Delta Air Lines (DAL) are up more than +1%. Also, Southwest Airlines (LUV) is up +0.53%.
Forte Biosciences (FBRX) is up more than +39% after Argenx SE agreed to buy the company for about $2.2 billion, or $77 a share.
D-Wave Quantum (QBTS) is up more than +16% after Benchmark Company LLC reinstated coverage on the stock with a recommendation of buy and a price target of $30.
IonQ (IONQ) is up more than +7% after Benchmark Company LLC reinstated coverage on the stock with a recommendation of buy and a price target of $60.
Baker Hughes (BKR) is up more than +6% after reporting Q2 revenue of $6.74 billion, better than the consensus of $6.51 billion.
Rocket Lab Corp. (RKLB) is up more than +2% after KGI Securities upgraded the stock to outperform from neutral with a price target of $107.
Earnings Reports (7/27/2026)
Rambus Inc (RMBS), Welltower Inc (WELL), Kilroy Realty Corp (KRC), Brown & Brown Inc (BRO), Principal Financial Group Inc (PFG), UDR Inc (UDR), Sanmina Corp (SANM), Nucor Corp (NUE), Sun Communities Inc (SUI), Universal Health Services Inc (UHS), Amkor Technology Inc (AMKR), F5 Inc (FFIV), Cincinnati Financial Corp (CINF), Element Solutions Inc (ESI), Applied Digital Corp (APLD), Cadence Design Systems Inc (CDNS), Brixmor Property Group Inc (BRX).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Fall from Early Highs as Chipmakers Retreat

In early trading on Monday, shares of Baker Hughes topped the list of the day's best performing components of the Nasdaq 100 index, trading up 8.4%. Year to date, Baker Hughes registers a 36.3% gain.
And the worst performing Nasdaq 100 component thus far on the day is SanDisk, trading down 3.6%. SanDisk is showing a gain of 483.6% looking at the year to date performance.
Two other components making moves today are ASML Holding, trading down 3.3%, and Honeywell International, trading up 7.5% on the day.
VIDEO: Nasdaq 100 Movers: SNDK, BKR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

ASML Holding N.V. - New York Registry Shares

Trend

Trend Class

Trend Power

Pattern

EMA

EMA-20

EMA-50

EMA-100

EMA-20

EMA-50

EMA-100

Oscillators

Stochastic

RSI

MACD

Candle pattern type