Jim Cramer Reportedly Highlights ASML’s Central Role In US-China Chip Battle

Jim Cramer reportedly cited ASML Holding N.V. (ASML) as a model for understanding the escalating trade war between the U.S. and China. 

According to a CNBC report, Cramer advised investors seeking to understand trade tensions to consider the Dutch manufacturer of advanced lithography systems, which are essential for chip production. 

The company reported stronger-than-expected third-quarter (Q3) results, with revenue climbing 0.7% year-over-year (YoY) to €7.526 billion ($8.8 billion). 

However, the company also warned of a sharp decline in Chinese sales in 2026 due to tightening export restrictions. The U.S. has already imposed limits on advanced chip exports over national security concerns, and the Dutch government has introduced licensing requirements impacting ASML’s ability to sell its most sophisticated extreme ultraviolet (EUV) lithography machines to China, the report stated. 

ASML stock traded over 1% higher on Wednesday afternoon. On Stocktwits, retail sentiment around the stock jumped to ‘bullish’ from ‘bearish’ territory the previous day. Message volume shifted to ‘high’ from ‘normal’ levels in 24 hours. 

ASML continues to sell less advanced lithography tools to China. “That is the crux of what the Chinese are most worried about,” Cramer said. “Without ASML, they can’t do what Nvidia does. ASML is the key. And as long as we continue to put a restriction on ASML, the Chinese have to be going nuts, because they can’t beat,” the U.S. in chip technology, he added.

Following its Q3 earnings, ASML also received a boost from BofA, which raised its price target on the company to €986 from €941 and reaffirmed a ‘Buy’ rating, according to TheFly. 

ASML stock has gained over 37% in the last 12 months. 

Exchange Rate: €1=$1.16

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