ASML Holding N.V. reports share buyback transactions conducted between May 25-29, 2026, under its current buyback program announced on January 28, 2026. The company repurchased approximately 56,567 shares across five trading days at weighted average prices ranging from €1,381.49 to €1,427.62 per share, totaling approximately €79.36 million.

The semiconductor sector is transitioning from an AI hype-driven rally to a sustainable growth story, with the AI market expected to grow from nearly $1 trillion in annual sales to $2 trillion by 2036. The VanEck Semiconductor ETF (SMH) is recommended as a way to gain exposure to industry leaders like Nvidia, TSMC, and Intel, which are positioned to drive future growth despite recent consolidation in non-megacap names.

The semiconductor sector is experiencing a bubble driven by momentum and FOMO rather than fundamentals, though the industry remains critical infrastructure. While the sector will face a harsh correction, the underlying demand for AI infrastructure is legitimate. The author discusses various semiconductor plays and their valuations, noting that after the semiconductor correction, critical minerals and commodities may lead the next market phase.

Billionaire Philippe Laffont of Coatue Management reduced positions in major cloud providers (Amazon, Alphabet, Microsoft, Oracle) during Q1 while increasing stakes in semiconductor infrastructure companies TSMC and ASML. The shift reflects a strategic pivot toward companies enabling AI chip manufacturing rather than those using the technology. TSMC benefits from its monopoly on advanced chip manufacturing for AI, while ASML dominates the equipment needed to produce these chips.

China's chip exports surged 100% year-over-year to a record $31 billion in April, tripling over two years. US export restrictions and growing AI demand are driving Chinese chipmakers like SMIC, Huawei, and Moore Threads to scale production of advanced semiconductors and develop homegrown alternatives to compete with US technology.

ASML Holding N.V. reported its share buyback transactions conducted between May 11-15, 2026, under its current buyback program announced on January 28, 2026. The company repurchased approximately 60,388 shares across five trading days at weighted average prices ranging from €1,296.46 to €1,349.34 per share, with total repurchased values consistently around €15.87 million per day.

US stocks fell sharply on Friday as the AI-driven rally loses momentum amid rising Treasury yields and inflation concerns tied to Middle East tensions. The Nasdaq futures dropped 1.55% while oil prices surged 3% on geopolitical risks. Chip stocks faced particular pressure after Trump-Xi talks failed to address semiconductor export controls, with markets now pricing in a 40% probability of a Fed rate hike by year-end.

Bond market signals suggest a Fed rate hike is now more likely than not by December 2026, reversing earlier expectations for rate cuts. Rising inflation data, including strong retail sales and surging import prices, have prompted a shift to a hawkish stance. AI infrastructure stocks and commodities sold off sharply on Friday as investors repriced risk, with the Nasdaq 100 falling 1.9% in premarket trading.

A new photonics ETF (EUV) launched on May 6, 2026, focusing on optical interconnect technology for AI data centers. The fund holds 15 stocks already up over 100% year-to-date, driven by structural demand from hyperscaler capex and supply constraints in indium phosphide lasers. However, critics note the ETF's top holdings lean toward general semiconductor names rather than pure photonics plays, duplicating exposure available in broader semiconductor funds.

U.S. equities fell sharply on May 12, 2026, after April's CPI came in hotter than expected at 3.8%, raising concerns the Federal Reserve will keep rates on hold throughout the year. The Nasdaq 100 sank 2.1% as the semiconductor sector collapsed, with memory chip stocks hit particularly hard by South Korea's proposed 'AI Citizen Dividend.' Notable gainers included Zebra Technologies (+18%) and Wendy's (+15%), while ZoomInfo plummeted 33% on slashed guidance.

While the Magnificent-7 tech giants have dominated the AI trade since ChatGPT's launch, investor focus is broadening to semiconductor and component suppliers benefiting from massive AI infrastructure spending. The AI-11 semiconductor stocks have outperformed the Mag-7 this year, as hyperscalers' capital expenditure drives demand across the entire AI supply chain from foundries to memory chips to storage.

ASML CEO Christophe Fouquet endorsed Nvidia's strategy of maintaining an eight-generation technology gap while selling globally, stating ASML follows a similar approach with a two to three-generation gap. Fouquet denied rumors of reverse-engineering in China, confirming no EUV machines have been shipped there. The comments come amid intensified U.S. efforts to tighten semiconductor export controls to China.