ASML Holding NV surged 6.49% during intraday trading on Thursday, leading a broad-based recovery across the semiconductor equipment sector. The sharp advance follows several consecutive sessions of heavy selling pressure that had driven the stock significantly lower throughout July.

The rebound came as analysts broadly characterized the prior sell-off as an overreaction to reports that a Chinese state-backed company had begun mass-producing immersion DUV lithography machines. Analysts noted that the Chinese manufacturer's planned output of approximately five units this year is vastly disproportionate compared to ASML's delivery of 131 immersion DUV systems last year, suggesting limited near-term fundamental impact. While ASML's China revenue share declined from 19% in the first quarter to 14% in the second quarter, institutions maintain buy ratings on the stock, citing exceptionally long demand visibility, with the company planning to increase Low-NA EUV and ArFi capacity by 30% each through 2027-2028.

The rally extended across the sector, with Lam Research surging more than 8%, Applied Materials gaining nearly 5%, and KLA-Tencor and Teradyne both advancing more than 3%, reflecting a broad-based repair in sentiment following the recent downturn.