Sands Capital Global Growth Fund stated in its Q2 2026 investor letter that ASML is well-positioned amidst increasing chip complexity driven by AI, anticipating that lithography capabilities could become the biggest constraint to AI infrastructure expansion.
The fund believes that AI demand will increase the need for advanced DRAM and logic chips, thereby driving up chip complexity, wafer demand, and lithography intensity. ASML, a Dutch semiconductor equipment company specializing in lithography systems, sees its investment results primarily reflect long-term expected growth in memory system sales. Fund analysis indicates that Chinese and non-Chinese foundries may need to significantly increase lithography capacity to meet AI chip demand, which could create years of tight supply conditions for ASML. ASML's stock closed at $1,714.88 on September 4, with a cumulative gain of 115.37% over the past 52 weeks.
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