(Bloomberg) — ASML Holding NV became Europe’s second-biggest listed company, overtaking LVMH by market value for the first time ever.
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The shares jumped 8.1% on Wednesday, valuing the company that produces equipment needed to make the most sophisticated semiconductors at about €377 billion ($410 billion). That’s some €641 million more than luxury conglomerate LVMH. In European markets, only Novo Nordisk A/S is worth more.
ASML’s surge was helped by news that its biggest client, chipmaker Taiwan Semiconductor Manufacturing Co., will receive the high-NA extreme ultraviolet machine by the end of this year. The chipmaking tool is ASML’s most powerful yet and carries a high price tag of €350 million apiece.
For ASML investors, it offered reassurance about future sales as TSMC has previously raised concerns about the machine’s pricing. The stock had pulled back since April after first-quarter results showed that top chipmakers held off buying high-end equipment.
“Significant orders are expected in coming quarters,” said Jefferies analyst Janardan Menon, who rated the stock as buy. TSMC is set to ramp up production for next-generation 2-nanometer chips in the second half of 2025, but ASML hasn’t received major bookings so far, he added.
Meanwhile, LVMH shares have fallen over the past month on concern that luxury sales are slowing. Chanel recently warned that the industry is set for difficult times and Kering SA is struggling to revive the fortunes of Gucci.
Read: Luxury Stocks Fall as Chanel Hints at Tougher Times to Come
–With assistance from Thyagu Adinarayan.
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