ASML's manufacturing capacity is fully booked through 2027, constraining the semiconductor equipment supply chain feeding global chip fabs.
Suncoast Equity Management, an SEC-registered investment advisory, released its Q3 2026 investor letter for its U.S. Equity Large Cap Select Growth Strategy. The strategy advanced 4.2% after fees in Q3, compared to 2.3% for the S&P 500, marking a potential shift in market leadership. Despite lagging the S&P 500 over the last four quarters ending June 30, 2026, the gap between portfolio earnings-per-share growth and returns is narrowing. The strategy has risen 14.5% after fees since March, suggesting a promising investment opportunity if severe macroeconomic conditions do not arise.
In its Q3 2026 investor letter, Suncoast highlighted ASML Holding N.V., a Dutch-based semiconductor lithography solutions provider. As of October 7, 2026, ASML closed at $1,804.96 per share. Over the past month, the stock returned 7.23%, while shares have gained 84.53% over the last 52 weeks. ASML carries a market capitalization of $688.51 billion and has traded within a 52-week range of $786.75 to $1,999.96.
Suncoast stated in its letter: "We doubled our ASML weight to 3.0% following accelerating second quarter earnings growth of +29% and management's commentary pointing to continued strength in 2026-27 and beyond. The stock's decline during the broader AI infrastructure sell-off in July provided an attractive opportunity. Management exceeded expectations, raised its 2026 revenue outlook, guided to accelerating third quarter sales and margins, and indicated that its expanded semiconductor equipment capacity is already fully booked through 2027. We believe ASML offers exceptional pricing power, competitive durability and direct exposure to structurally rising AI-semiconductor capital spending. As the world's sole supplier of the most advanced lithography systems—equipment essential to producing leading-edge logic, memory and AI chips—ASML's competitive position looks especially strong."
As of the end of the second quarter, 140 hedge fund portfolios held ASML, compared with 133 in the previous quarter.