ASML Stock Soars 7% as Nvidia’s $5 Billion Intel Investment Signals Surge in Advanced Chip Demand

Shares of ASML Holding NV surged 7% on September 19, 2025, after Nvidia announced a landmark $5 billion investment and broad partnership with Intel. This move, which has sent ripples through global semiconductor markets, is widely seen as a major catalyst for increased demand for ASML’s unique extreme ultraviolet (EUV) lithography equipment—a technology essential to manufacturing the world’s most advanced computer chips (CoinCentral).

Nvidia-Intel Partnership: A New Era for Semiconductor Collaboration

On Thursday, Nvidia—the world’s first $4 trillion company and leader in artificial intelligence—confirmed a $5 billion stake in Intel. The partnership focuses on developing custom technology for AI data centers and personal computing. Intel will design and potentially manufacture chips customized for Nvidia’s AI infrastructure and next-generation PC products, blending Nvidia’s AI expertise with Intel’s prowess in central processing units (CPUs) (OPB).

Intel CEO Lip-Bu Tan described the collaboration as “built on the core strengths of both companies,” emphasizing Nvidia’s leadership in accelerated computing and Intel’s dominance in data center and PC CPUs. Nvidia CEO Jensen Huang projected that the partnership targets a $50 billion annual market, calling the initiative “fantastic for Intel” and “fantastic for us.”

Why ASML Benefits: The EUV Advantage

The Nvidia-Intel alliance is expected to accelerate demand for cutting-edge semiconductor equipment—precisely where ASML dominates. ASML’s EUV machines are the only tools capable of producing the ultra-fine circuitry required by the most advanced AI and data center chips. As Intel ramps up its manufacturing ambitions to serve Nvidia’s needs, analysts anticipate a surge in orders for ASML’s equipment.

Reflecting this optimism, Bank of America raised its price target for ASML from €724 to €941, citing the partnership as a “game-changer” for equipment suppliers. Investor sentiment was immediately positive, with ASML’s stock price jumping sharply and market commentary highlighting expectations of a revitalized Intel and a new wave of capital spending across the sector (CoinCentral).

Broader Industry Impacts and ASML’s AI Moves

The Nvidia-Intel deal is not just a boon for chipmakers, but also for the broader semiconductor supply chain. With Intel now positioned to compete more aggressively in AI data centers, suppliers such as ASML stand to benefit from increased equipment investment and innovation cycles. Notably, ASML recently invested €1.3 billion in AI startup Mistral, further signaling its commitment to the rapidly growing AI sector.

Market Outlook

• ASML stock: Up 7% after news broke of the Nvidia-Intel partnership
• Bank of America price target: Raised from €724 to €941
• Nvidia’s investment: $5 billion in Intel at $23.28 per share (Nvidia News)

Market analysts and investors are watching closely as this collaboration unfolds, with expectations that the deal will reshape the competitive landscape of advanced chips and fuel a new chapter of growth for ASML and its peers.