AI Chip Demand Is Driving ASML Stock And 2 Semiconductor Picks

TSMC’s surge in AI chip sales, higher revenue guidance for 2026, and a larger capex plan have put fresh attention on semiconductor heavyweights across the globe. With the sector still up 72% this year despite a recent pullback, many investors fear missing the next leg of this story. This article unpacks the news and then walks through 3 stocks from our Semiconductor Industry screener that appear positively exposed.

The stocks highlighted below are only a small sample from this theme, while the full screen surfaced 28 more semiconductor companies with equally compelling stories that are not covered here. To identify and analyze the wider opportunity set in this space, head straight into the Semiconductor Industry screener.

BE Semiconductor Industries (ENXTAM:BESI)

Overview: BE Semiconductor Industries is a Dutch supplier of advanced equipment used to assemble and package chips, covering die attach, packaging and plating tools that sit between wafer production and the final semiconductor device. Its systems support complex processes like hybrid bonding and wafer level packaging that are increasingly important for AI data centers, high end smartphones and other performance intensive applications.

Operations: BE Semiconductor Industries generates about €734 million in revenue from semiconductor equipment and related services, with significant exposure to Asian customers, including roughly €312 million from China, €82 million from Taiwan and around €63 million from Malaysia.

Market Cap: €17.9b

Investors watching the AI surge may want BE Semiconductor Industries on their radar because it sits in the critical assembly and packaging step that high performance chips rely on. Recent results show strong order momentum tied to AI, hybrid bonding and data center demand, and analysts report that earnings and revenue expectations are running well ahead of the broader Dutch market. At the same time, the stock trades on a high P/E and has shown sharp price swings, while customer concentration and heavier R&D spending add further risk. For investors comfortable with volatility, the mix of high ROE, AI linked exposure and rich valuation creates a tension that some may find worth exploring in more detail.

BE Semiconductor Industries sits where AI momentum meets a rich P/E that many investors may be underestimating. Get the full story on how that trade off really looks in the 2 key rewards and 1 important major warning sign

Build your own AI focused semiconductor shortlist

BE Semiconductor Industries and the two other stocks in this article all surfaced from a single Simply Wall St screener, yet the real opportunity is in shaping your own filters. Use our flexible Screener to mix valuation, growth, balance sheet and risk metrics to suit your style, or tap into our curated Investing Ideas for ready made starting points.

ASE Technology Holding (TWSE:3711)

Overview: ASE Technology Holding is a Taiwan based semiconductor service provider that handles critical steps like packaging, testing and electronic manufacturing for chips used in computing, communications, automotive, industrial and server applications worldwide.

Operations: ASE Technology Holding generates most of its revenue from semiconductor packaging at about NT$360.3b and electronic manufacturing services at about NT$295.4b, with testing contributing about NT$84.5b and smaller contributions from other activities.

Market Cap: NT$2.8t

ASE Technology Holding sits at the heart of the AI supply chain as a key packaging and testing partner. TSMC’s stronger AI guidance and heavier capex can feed directly into its order book, especially for high performance computing and panel level packaging. Recent results show earnings momentum, with H1 2026 profit and margins ahead of last year and management talking about AI and data center related demand. However, the stock trades on a relatively rich P/E, carries high debt and has seen sizeable insider selling. For investors who think AI related packaging capacity will stay tight, the combination of advanced technologies such as chiplet friendly panel lines and these financial trade offs makes ASE a company that some may choose to study more closely.

ASE Technology Holding’s AI-exposed packaging capacity, elevated P/E, and insider selling create a story many investors may not have fully pieced together yet. See how the trade-off really stacks up in the 2 key rewards and 4 important warning signs

ASML Holding (ENXTAM:ASML)

Overview: ASML Holding builds the lithography machines that chipmakers use to etch tiny patterns onto silicon wafers, including the extreme ultraviolet systems that are essential for the most advanced AI and data center chips. It also supplies metrology, inspection, software and services so customers can improve yields and keep existing tools productive for years.

Operations: ASML Holding generates about €35.3b in revenue from semiconductor equipment and services, with large exposures to South Korea at €10.8b, Taiwan at €9.1b and China at €8.7b alongside sizeable sales in the United States and Japan.

Market Cap: €575.7b

ASML Holding sits at the very center of the AI boom because every leading chip foundry depends on its EUV tools, and TSMC’s higher AI driven capex plan reinforces that reliance. The company combines very high profitability, with a 30.1% net margin and ROE near 49%, and a long pipeline of EUV and High NA demand, yet the stock already trades on a premium P/E and a cash flow model flags potential overvaluation. Add in export controls, fresh Chinese DUV competition and funding risk from reliance on external borrowing, and you get a powerful but complex story that many investors only partially understand today.

ASML Holding’s premium P/E, high margins and AI critical role suggest the market might still be missing part of the story. Get the full context in the 4 key rewards and 1 important warning sign

Seeking Fresh Alternatives Before Momentum Flies

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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