ASML has experienced a significant recovery, with its stock price rising 152% since the lows of 2025, largely fueled by escalating demand for AI infrastructure and memory chip shortages that are prompting new semiconductor fabrication investments. In its Q1 2026 earnings report, ASML exceeded expectations, achieving €8.8 billion in net sales and €2.8 billion in net profit, marking a notable trend where memory orders have overtaken logic orders for the first time in several years. In response to these developments, management has revised its revenue guidance for 2026 to a range of €36 billion to €40 billion. However, the stock is currently trading at a high 51x P/E ratio, which is well above its historical average of 15. While the cyclical upside remains appealing, the steep valuation suggests that the positive outlook may already be factored into the stock price, presenting a less favorable risk/reward scenario for new investors. As a result, existing shareholders may choose to hold their positions, while potential buyers might exercise caution.