Investing.com -- Shares in ASML climbed to a fresh record on Thursday, lifting the Dutch semiconductor equipment group’s market value above $500 billion and reinforcing its position as Europe’s most valuable listed company.

The stock surged as high as €1,167 in Amsterdam, a record level that valued the group at about €443 billion. ASML was last up around 5%, trading at €1,139 by 09:46 GMT.

The move followed a sharp rally in chip stocks after Taiwan Semiconductor Manufacturing Company reported stronger-than-expected results, triggering gains across the European semiconductor sector.

ASM International soared more than 8%, BE Semiconductor gained 6%%, STMicroelectronics rose 1.2%, and ARM Holdings jumped 2.8% in U.S. premarket trading.

TSMC closed 2025 with another quarter of record earnings, entering the new year with momentum as it expands capacity to meet sustained demand for AI chips.

Fourth-quarter net profit jumped 35% year on year to a record NT$505.74 billion, equivalent to $16.04 billion. That exceeded the NT$465.83 billion analyst consensus in a FactSet poll and topped the prior quarter’s record.

Revenue rose 20.5% to NT$1.046 trillion, easing from the previous quarter’s pace but still within guidance. Full-year revenue reached NT$3.809 trillion.

Highlighting what it calls the “AI mega trend,” TSMC said its customers were sending strong demand signals and requesting additional capacity. The company forecast that 2026 revenue would rise nearly 30% in U.S. dollar terms.

Capital expenditure could increase by as much as 37% this year to $56 billion and is expected to rise “significantly” again in 2028 and 2029 due to AI-driven demand, the company noted.

First-quarter revenue is projected to jump as much as 40% from a year earlier to $35.8 billion, TSMC said.

Asked about concerns around a potential AI bubble, chief executive C.C. Wei struck a cautious tone. “We’re also very nervous about it. We’re investing $52-$56 billion in capex. If we did not do it carefully, that would be a disaster for TSMC for sure.”

TSMC’s strong earnings leave the company in a solid financial position as it grapples with supply constraints and growing pressure from the U.S. to shift more semiconductor production onshore.

The Taiwanese group, whose customers include Nvidia and Apple, said last year it would invest $100 billion in the U.S., in addition to $65 billion already committed to three factories in Arizona, one of which is now operating.