ASML, the world's leading semiconductor equipment manufacturer, reported Q1 2026 earnings that beat expectations with 13% YoY revenue growth to €8.77 billion and raised its full-year revenue guidance to €36-40 billion (10-22% growth). As the sole producer of advanced EUV lithography systems essential for AI chip manufacturing, ASML's strong guidance signals continued momentum in the AI market and suggests the Nasdaq could reach new highs.

ASML reported Q1 2026 earnings that beat expectations with 13% YoY sales growth to €8.77B and 19% EPS growth, but provided lighter-than-expected Q2 guidance of €8.7B versus analyst estimates of €9.08B. Despite the post-earnings 2.4% decline, the stock remains constructive with strong full-year 2026 guidance of €38B. Key tailwinds include major customer CapEx expansions (TSMC +32%, Micron +81%, Samsung $28B), though China sales dropped 23% YoY amid potential new export controls on DUV lithography equipment.

Micron Technology stock fell 3.5% on April 15, 2026, despite broader market gains, following ASML's better-than-expected Q1 earnings report. While ASML beat profit and revenue estimates and raised its 2026 guidance, some investors expected stronger forward guidance. Concerns about export restrictions to China also weighed on both companies' valuations. The article suggests the market reaction may be overdone given Micron's growth-dependent valuation.

The S&P 500 is near record highs as markets remain sensitive to Middle East geopolitical developments. Trump's comments suggesting the Iran war could end soon boosted sentiment, while softer-than-expected PPI data reduced expectations for Fed tightening. Banks benefited from trading activity, while some tech and semiconductor stocks showed mixed performance.

U.S. stock futures gained on Wednesday following Trump's comments about potential Iran talks, boosting de-escalation hopes. Major indices showed mixed performance with the S&P 500 up 0.05% and Nasdaq 100 up 0.11% in premarket trading. Key movers included ASML beating earnings expectations, Broadcom partnering with Meta on AI chips, and GitLab collaborating with Google Cloud. BlackRock upgraded to overweight U.S. stocks citing contained geopolitical damage and strong corporate earnings.

The S&P 500 climbed 1.18% on Tuesday to 6,967.38, approaching its all-time high as easing oil prices and renewed hopes of U.S.-Iran deal talks boosted sentiment. WTI crude fell nearly 8% and softer inflation data reinforced expectations that the Fed may not need to tighten policy further. Markets remain split on Wednesday's opening direction, with investors watching bank earnings from Bank of America and Morgan Stanley, plus import/export price data.

ASML reported Q1 2026 net sales of €8.8 billion with a 53.0% gross margin, exceeding guidance expectations. The company raised its full-year 2026 guidance to €36-40 billion in total net sales with 51-53% gross margin, citing strong demand driven by AI-related infrastructure investments and customer capacity expansion plans. ASML also announced a 17% increase in dividend and continued its €1.1 billion share buyback program.

Five major companies are reporting earnings this week: Netflix will announce Q1 results after raising subscription prices; ASML and TSMC, both semiconductor equipment/foundry stocks that have doubled in a year, face heightened expectations; PepsiCo, a slower-growth dividend stock, will report; and CarMax, facing declining sales in the used auto market, will announce fiscal Q4 results.

First-quarter 2026 earnings season opens with unusually high stakes following the U.S.-Iran war's impact on oil markets and supply chains. Major banks dominate the calendar, with focus on loan demand and credit stress. Options markets are pricing single-digit to nearly 30% post-earnings swings across 10 large-cap companies, with Wipro showing the most extreme volatility expectations at 30.09% implied move.

ASML Holding N.V. reported its latest share repurchase transactions conducted under its current buyback program announced on January 28, 2026. Between April 6-10, 2026, the company repurchased approximately 82,000 shares at weighted average prices ranging from €1,116.57 to €1,256.70 per share, totaling approximately €97.7 million.

AI stocks are showing divergent performance in 2026. While major AI spenders (hyperscalers) like Microsoft, Meta, and Nvidia have declined, companies in the AI supply chain—chipmakers and data center equipment manufacturers—are soaring. The market appears to be rewarding near-term beneficiaries of AI spending rather than the big spenders themselves, though the author believes this presents a buying opportunity for long-term AI investors.

Major U.S. stock indexes rallied on April 8, 2026, following news of a two-week U.S.-Iran ceasefire. The S&P 500, Nasdaq, and Dow Jones all gained over 2.5% as crude oil prices fell 15% to $96/barrel after the Strait of Hormuz reopened. Tech and AI stocks led gains, while energy stocks lagged due to lower oil prices. Markets are cautiously optimistic but monitoring ongoing negotiations.