2027 and 2028 are projected to be strong years for semiconductor equipment, driven by fab expansions. TSMC is expanding its Arizona campus with two additional fabs, fueling demand for ASML. TSMC’s capex forecasts for 2026 may be conservative, with potential for further upside. Memory makers like Samsung are facing a capacity shortage till 2028. ASML’s fair value estimate has been raised to EUR 1000 from EUR 850, with revenue estimates increased for 2026-28. TSMC is expected to order up to 40 Low-NA systems in 2026, while memory demand from South Korea is set to grow by double digits until 2027. Intel remains a wildcard in the foundry operations.

Read more at Morningstar: ASML: TSMC Expansions, Memory Shortages, and Intel as a Wild Card