ASML surges as SK Hynix places record $8B EUV order for AI memory
Largest disclosed order strengthens Dutch lithography giant's AI-fueled backlog
ASML Holding shares surged more than 4% on Tuesday after SK Hynix announced a record $7.97 billion order for extreme ultraviolet lithography tools, marking the largest single order publicly disclosed by the Dutch semiconductor equipment maker. The South Korean memory chipmaker committed to purchasing approximately 30 EUV machines for delivery through December 2027, a massive investment aimed at accelerating production of next-generation artificial intelligence memory.
The order, disclosed by SK Hynix on Tuesday morning, represents a significant endorsement of ASML's dominant position in advanced lithography. SK Hynix will deploy the EUV tools at its upcoming Yongin factory and M15X plant in Cheongju, facilities critical for manufacturing high-bandwidth memory, or HBM, which has emerged as essential infrastructure for AI data centers.
SK Hynix, which serves as a primary HBM supplier to Nvidia, is racing to expand capacity as hyperscale cloud providers and AI companies clamor for advanced memory chips. The company is targeting mass production of next-generation memory using 6th-generation (1c) process technology, positioning itself against competitors including Samsung Electronics, which recently announced plans to mass-produce advanced HBM4 products.
"This strategic investment aims to boost SK Hynix's advanced-chip production capabilities to meet the surging demand driven by artificial intelligence," according to Morningstar's analysis of the deal. "As a key supplier of HBM products for Nvidia, SK Hynix is looking to solidify its leadership in the competitive HBM market."
ASML stock gained $52.37 to $1,369.62 in morning trading, extending its year-to-date gains. The Dutch company, which commands a market capitalization of $538 billion, trades above its 200-day moving average of $1,026 but remains below its 50-day average of $1,387. Despite Tuesday's rally, shares remain well below their 52-week high of $1,547.22 reached in November.
The SK Hynix order significantly bolsters ASML's already robust backlog. The company reported total net sales of €9.7 billion in the fourth quarter of 2025, with net bookings reaching €13.2 billion. Of that, €7.4 billion came from EUV systems alone, representing a nearly 250% increase compared with the fourth quarter of 2024. ASML's total backlog stood at a record €38.8 billion at year-end, with EUV systems accounting for €25.5 billion, or 65% of the total.
Analysts have grown increasingly bullish on ASML as the AI boom drives demand for more advanced semiconductor manufacturing equipment. RBC Capital maintains an "Outperform" rating with a $1,625 price target, while Wells Fargo rates the stock "Overweight" with a $1,650 target. Barclays upgraded the shares to "Overweight" on January 29. The consensus analyst target price stands at $1,474.81, according to ASML's market data.
The EUV order comes amid intensifying competition in the AI memory market. SK Hynix's investment signals confidence that demand for HBM chips will remain strong through at least 2028, even as some investors have grown concerned about potential overinvestment in AI infrastructure. The company's HBM revenue has surged as Nvidia's graphics processors dominate the AI accelerator market, creating a tight supply environment for the specialized memory chips required to feed those systems.
Bernstein analysts estimate the SK Hynix deal covers approximately 30 EUV machines spread over two years, representing a substantial portion of ASML's annual EUV production capacity. The Dutch company, headquartered in Veldhoven, faces increasing pressure to expand manufacturing as customers line up for its most advanced systems, which can cost more than $200 million each.
Beyond traditional EUV lithography, ASML is expanding into advanced packaging systems that are critical for next-generation HBM production. The company is developing hybrid bonding systems that enable more sophisticated three-dimensional chip stacking, a technology essential for future AI memory architectures.
Looking ahead, investors will be watching whether other major chipmakers follow SK Hynix's lead with substantial EUV orders. Samsung and Micron Technology, SK Hynix's primary competitors in the HBM market, are also expected to need significant EUV capacity to remain competitive in the AI chip race. ASML has projected that revenue could reach $71 billion by 2030 as demand for lithography machines intensifies due to the AI boom, according to industry analysts.
The SK Hynix order provides a concrete signal that despite macroeconomic uncertainties, the AI semiconductor cycle continues to drive substantial capital expenditure plans. For ASML, the record deal validates its strategic positioning as the primary beneficiary of the industry's shift toward more complex, AI-driven manufacturing requirements.