ASML, European chip stocks rally after Micron’s blockbuster earnings

ASML ↘ 0.34% shares climbed more than 3.5% in early European trading on Thursday, June 25, as a broader technology rally swept the continent following blockbuster quarterly results from Micron Technology ↘ 1.49% that reinforced investor confidence in AI-driven chip demand.

Micron's Blowout Quarter Lifts the Sector

Micron reported fiscal third-quarter earnings after market close on Wednesday that exceeded Wall Street expectations on every metric. The company posted earnings per share of $25.11 on revenue of $41.5 billion, far surpassing analyst consensus estimates of roughly $20.39 EPS and $35.1 billion in revenue. Micron also issued a fourth-quarter revenue forecast of $49 billion to $51 billion, well above the $43.2 billion analysts had anticipated.finance.yahoo+1

The results sent Micron shares surging more than 15% in after-hours and premarket trading, lifting chip stocks globally. In Europe, the pan-European STOXX 600 rose 0.27% in early trading, with technology stocks up 1.7% and leading all sectors. Infineon and STMicroelectronics ↗ 3.38% each gained more than 3%, while ASML and BE Semiconductor both climbed over 3.5%, according to Reuters.cnbc+3

Analyst Upgrades and Export Control Headwinds

The rebound came after a turbulent stretch for ASML tied to U.S.-China export control tensions. Bloomberg reported on June 24 that the Netherlands is actively lobbying Washington against expanding semiconductor equipment export restrictions that would further constrain ASML's ability to sell to China. Earlier in June, U.S. Commerce Secretary Howard Lutnick raised concerns that one of ASML's extreme ultraviolet lithography machines may have ended up in China — an allegation the company firmly denied.bloomberg+2

Fresh analyst upgrades also bolstered sentiment. On June 22, Bank of America ↗ 0.96% analyst Didier Scemama raised his price target on ASML to $2,345, while Wells Fargo ↘ 0.31% lifted its estimate to $2,200, according to data tracked by Stock Analysis. Both cited ASML's strong order backlog and growing AI demand visibility.stockanalysis

AI Demand Underpins Outlook

The rally reflects a broader pattern in 2026, with ASML shares up more than 50% year-to-date as the AI infrastructure buildout drives unprecedented demand for advanced chipmaking equipment. ASML raised its full-year 2026 revenue guidance to between €36 billion and €40 billion after beating first-quarter expectations earlier this year. Jake Behan of Direxion summarized the market mood following Micron's results: "The issue was never about demand; it was about sustainability. This report extends that risk further into the future."marketwatch+2