ASML Holding, as a semiconductor manufacturing equipment supplier, benefits from the AI trend, with its key lithography machines being crucial in semiconductor manufacturing. Its customers include Taiwan Semiconductor, Samsung Electronics and Intel.

The Dutch company's dominant position in the chip manufacturing supply chain has driven its 42% rise in US stocks this year, benefiting from people's expectations of increased AI chip manufacturing. However, the decline since the Q1 financial report in April this year may cause concern over the Q2 financial report to be released on July 17.

UBS Group analyst Francois-Xavier Bouvignies wrote in a research report: 'Although market sentiment remains relatively optimistic before the earnings are released, concerns about last quarter's order data are increasing.'

Taiwan Semiconductor is a special focus for ASML. ASML hopes to sell its latest machines to this chipmaker, which will manufacture 2nm processors, expected to drive the next generation of smart phones.

Although Taiwan Semiconductor publicly expressed reservations about purchasing ASML's latest High NA EUV system, citing high costs and hinting at the continuation of using old machines for advanced chip manufacturing, ASML remains confident in delivering its most advanced chip manufacturing machines to Taiwan Semiconductor this year. This view is supported by Jefferies Financial analysts, who quoted CFO Roger Dassen's speech during the recent investor conference call.

UBS Group analyst Bouvignies also holds the same view. He wrote that ASML's Q2 orders may exceed $5 billion euros, compared to the consensus expectation of 4.6 billion euros.

Bouvignies wrote: 'We believe that the upward risks of the fiscal year 2024 and fiscal year 2025 guidance will rise due to the promotion of Taiwan Semiconductor's capital expenditure, sustained strong demand from China, and the memory cycle waiting to start.'

UBS Group analysts set a target price of 1050 euros for ASML's stock in the next 12 months and maintain a buy rating.