ASML's High-NA Progress Amazes: Can Early Trials Turn to Mass Demand?

ASML Holding N.V. ASML is making strong progress with its High-NA EUV (Extreme Ultraviolet) lithography systems, which could shape the future of advanced chipmaking. In the first quarter of 2025, the company shipped its fifth and final NXE:5000 High-NA system. It began delivering the newer NXE:5200 model in the second quarter.

These systems are designed to help chipmakers print smaller and more complex features with fewer steps and better yields. Early feedback from major customers like Intel Corporation INTC and Samsung has been positive.

On its first-quarter earnings call, ASML Holding revealed that Intel has reported exposing over 30,000 wafers in a single quarter using the High-NA tool. This also resulted in a significant improvement in the process, with the number of process steps reducing to less than 10 from 40 on a given layer. Another user, Samsung, noted a 60% reduction in cycle time on one of its layers. These results demonstrate that the technology is maturing faster than ASML Holding’s earlier Low-NA EUV tools, which took longer to reach production readiness.

Despite this promising start, mass demand for High-NA is still some time away. On its first-quarter earnings call, ASML Holding stated that the technology is in phase one, where customers use the tools for research and development. Phase two will begin around 2026-2027, with limited production use. Full adoption in volume manufacturing is expected in phase three.

The challenge now is to enhance the tool’s productivity and demonstrate its reliability in real-world applications. If that happens, High-NA could become a game-changer for leading-edge chipmakers. For now, ASML Holding looks well-positioned to lead this next phase of semiconductor innovation.

Can ASML Stay Ahead as Rivals Push Chipmaking Tech Forward?

Applied Materials, Inc. AMAT and KLA Corporation KLAC are also key players in advanced chipmaking tools. Applied Materials supplies equipment used in chip fabrication, especially for patterning and deposition steps that can complement or compete with EUV. KLA, on the other hand, focuses on process control and metrology. Its tools are vital in ensuring chip quality, especially when new systems like High-NA are introduced.

Both companies benefit from growing semiconductor complexity and are investing in next-gen technologies. While they don’t manufacture EUV systems, they are critical to the same ecosystem and could benefit if ASML’s High-NA rollout faces delays.

ASML’s Share Price Performance, Valuation and Estimates

Shares of ASML Holding have risen around 14.8% year to date compared with the Zacks Computer and Technology sector’s gain of 6.1%.

From a valuation standpoint, ASML trades at a forward price-to-sales ratio of 8.2, significantly higher than the sector’s average of 6.62.

The Zacks Consensus Estimate for ASML Holding’s 2025 and 2026 earnings implies a year-over-year increase of approximately 31.6% and 11.1%, respectively. The estimates for 2025 have been revised upward in the past seven days, while those for 2026 have moved south over the same period.

ASML Holding currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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