Is chip giant ASML about to hit a ceiling, or break through it?

ASML’s latest results reignited the rally that has made it Europe’s most valuable company, until ‍questions about its capacity to meet record orders sent the stock sliding – highlighting just how stretched expectations have become.

Shares in the Dutch chip-machine maker ⁠initially hit new highs after it reported fourth-quarter earnings on Wednesday, before reversing to end down 2%.

The whipsaw trading underscores how the firm, whose tools are used by chipmakers such as Taiwan’s TSMC to produce AI chips for Nvidia, is testing the limits of investor appetite.