On June 5, Dutch semiconductor equipment manufacturer ASML Holding NV surpassed LVMH in market capitalization for the first time, becoming Europe’s second-largest listed company.
Bloomberg reported today that ASML’s share price rose 8.1%, valuing the company at approximately 377 billion euros. Previously, luxury conglomerate LVMH Moet Hennessy Louis Vuitton SE held the No. 2 market capitalization position in the European market, but that position was reversed today.
The current leader in the European market is Novo Nordisk A/S, a Danish global pharmaceutical company, with ASML Holding in second place and LVMH in third.
The rise in ASML’s stock price was boosted by news that the company’s main customer, chipmaker TSMC Taiwan Semiconductor Manufacturing Co. plans to install high-NA EUV equipment by the end of the year. Bloomberg reported, “For ASML investors, it offered reassurance about future sales as TSMC has previously raised concerns about the machine’s pricing. ” The most powerful chip manufacturing equipment produced by ASML is said to be priced at a high 350 million euros per unit.
In contrast, LVMH’s share price has been falling over the past month due to the recent trend of slowing sales in the luxury industry. Likewise, LVMH competitor Kering is forecasting a 40%-45% decline in operating income for the first half of the year, following a decline in first-quarter sales for its flagship Gucci brand.