ASML Holding NV's stock has increased by nearly 16% over the past month, outperforming the broader technology sector, which gained 6.2%. The stock reached its highest level in over a year, closing at $878.42, with a peak of $881.46 earlier in the session. This rally is driven by positive investor sentiment towards the semiconductor equipment industry, particularly ASML’s dominance in EUV lithography technology, which is critical for manufacturing advanced chips at 3nm and below. ASML’s technological leadership and upcoming High-NA EUV systems, essential for future chip nodes, support its long-term growth prospects. The company reported strong Q2 results with a 23% revenue increase and a 47% EPS jump but has expressed caution about 2026 growth due to market uncertainties, customer hesitations, and ongoing US-China tariff discussions. Its guidance for Q3 indicates revenues between €7.4 billion and €7.9 billion, a modest 2% YoY increase, with a decline in gross margins to 50-52%. Despite its premium valuation, with a forward P/E of 30.63, ASML remains a key player in the semiconductor industry, especially as AI and advanced chip demands grow. Investment analysts suggest holding the stock due to its technological moat and long-term potential, despite near-term uncertainties.