Semiconductor industry giants Intel (INTC), Taiwan Semiconductor (TSM), Samsung Electronics and others are gearing up to expand their production capacity. That puts ASML (ASML) — the world’s only manufacturer of extreme ultraviolet lithography equipment used in chipmaking — in an enviable position. It also helps put ASML stock on the IBD Leaderboard list of top growth stocks as it looks to refurbish a breakout.

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Note that artificial intelligence and semiconductor giants Nvidia (NVDA) and Broadcom (AVGO) also join ASML on IBD Leaderboard.

Currently trading just over 1,000 per share, ASML may be next in line for a stock split, according to Barchart, following recent ones by Nvidia stock and Broadcom.

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ASML Expands Leading-Edge Semiconductor Ecosystem

Headquartered in the Netherlands, ASML provides chipmakers what they need — hardware, software and services — to mass produce patterns on silicon through lithography. Global in scale, ASML operates across Europe, the U.S. and Asia, employing over 42,700 people.

Earlier this month, ASML and IMEC, a leading research and innovation hub in nanoelectronics, announced the opening of the High NA (numerical aperture) EUV Lithography Lab in Veldhoven, Netherlands. The lab will be jointly run by ASML and IMEC.

The two firms say the lab represents a milestone in preparing next generation High NA EUV for high-volume manufacturing — expected to happen in the 2025—2026 time frame.

On June 5, ASML stock spiked over 9% following a news report saying TSMC had purchased ASML’s high numerical aperture, extreme ultraviolet lithography system. A TSMC executive had previously said the high-NA EUV machine was too expensive. Each ASML machine has a hefty price tag of around $380 million.

Etching New Buy Point

On June 12, ASML popped past a 1,056.34 buy point in a second-stage cup base. The chip equipment maker then proceeded to float in and out of buy range over the next several days. While on track for a third-straight down day Monday, ASML stock is testing its 21-day exponential moving average, avoiding any sell signals.

The relative strength line has slipped off its 52-week high, so look for that to begin trending upward.

Fellow IBD Leaderboard stock Nvidia reversed lower after briefly hitting a record high on June 20. Down again Monday afternoon, Nvidia is now testing support at its 21-day line. Nvidia’s recent action is a reminder to keep in mind the eight “secrets” of when to sell stocks.

Meanwhile, TSMC stock, like Nvidia, has fallen off a recent all-time high. Intel remains mired in a long, multiyear decline.

Follow Matthew Galgani on Twitter at @IBD_MGalgani.

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