ASML Holding N.V. (ASML) Rallied Following Solid Results

Soumya Eswaran

Wed, May 20, 2026 at 9:20 AM EDT 3 min read

TCW Funds, an investment management firm, published its first-quarter 2026 investor letter for the 'TCW Concentrated Large Cap Growth Fund.' A copy of the letter is available to download here. The first quarter was marked by volatility in equity markets, driven by geopolitical tensions, concerns about the private credit sector, a government shutdown, and ongoing AI concerns. During this period, The Fund (I Share) reported a net loss of 11.75%, lagging behind the Russell 1000 Growth Index return of -9.78%. The Fund considers the market's broadening as a healthy sign and remains confident that the market will eventually recognize the portfolio's intrinsic value. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.

In its first-quarter 2026 investor letter, TCW Concentrated Large Cap Growth Fund highlighted ASML Holding N.V. (NASDAQ:ASML) as a notable contributor. ASML Holding N.V. (NASDAQ:ASML) is a Dutch-based semiconductor company that provides lithography solutions. On May 19, 2026, ASML Holding N.V. (NASDAQ:ASML) stock closed at $1,459.44 per share. One-month return of ASML Holding N.V. (NASDAQ:ASML) was 1.09%, and its shares gained 97.98% over the past 52 weeks. ASML Holding N.V. (NASDAQ:ASML) has a market capitalization of $562.49 billion.

TCW Concentrated Large Cap Growth Fund stated the following regarding ASML Holding N.V. (NASDAQ:ASML) in its Q1 2026 investor letter:

"Our strongest performance during the quarter came from the information technology and industrials sectors. Shares of ASML Holding N.V. (NASDAQ:ASML) (ASML; 3.46%**) rallied after the company reported solid 4Q25 results. Revenue of €9.7b (+29% QoQ, +5% YoY) modestly beat consensus estimates of €9.6b as strength in services (upgrades) and foundry offset slower memory shipments. Bookings of €13b meaningfully topped consensus estimates (€7.5b) driven by leading edge EUV (Extreme Ultraviolet) bookings of €7.4b. Management’s CY26 revenue guidance range was wide (+4% to +19%), reflecting the potential timing of deliveries (2026 or 2027), but it is much better than a quarter ago when management said “we do not expect 2026 total net sales to be below 2025.” Investor sentiment has improved meaningfully over the last quarter due to strong capex guidance by TSMC, increasing DRAM pricing, and acknowledgement capacity constraints exist at ASML’s largest customers. In our view, demand remains robust for ASML as the lone provider of leading-edge lithography, critical to future chip production. We remain positive on shares."