News Digest, 2026-07-16

ASML, VW, SpaceX: Three Signals in Global Capital

ASML reported Q2 net income of €2.9 billion, beating analyst estimates by roughly €300 million.

The Dutch firm remains Europe’s most valuable company, holding a monopoly on extreme-ultraviolet (EUV) lithography machines essential for producing the most advanced chips.
ASML plans to raise production of its top-tier EUV systems by 30% in both 2027 and 2028, addressing a chip shortage that has been constraining AI adoption.

TSMC, ASML’s largest customer, also posted strong quarterly revenue this week, reinforcing the bullish outlook across the semiconductor supply chain.

Geopolitical risk looms large: U.S. Commerce Secretary Howard Lutnick alleged an EUV machine was illicitly shipped to China, a claim ASML denies, leaving the company exposed to escalating U.S.-China tech tensions.

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Volkswagen Group is pursuing the largest restructuring in its history, with proposals to cut up to 100,000 jobs worldwide and close four German plants — though labor representatives have so far blocked the move.
At the same time, VW is preparing to cull half its global product lineup as it fights a crumbling position in China, rising costs, and lagging EV sales.

To fund the transition, the Financial Times reports Volkswagen is considering new divestments to finance its shift to electric vehicles, batteries, software, and autonomous driving. Reported sale candidates include motorcycle brand Ducati, alongside a possible IPO for Lamborghini that would let VW retain control through Audi while raising capital via a public listing.

Speculation has even extended to Chinese buyers: a prominent German economist has suggested BYD could one day acquire Volkswagen, warning Europe has been too slow to respond to China’s EV strategy — though any such deal would almost certainly face intense political and regulatory scrutiny, and there is currently no evidence either company is considering it.

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SpaceX shares dipped below their $135 IPO price for the first time on Wednesday, falling to $132.15 intraday before closing at $135.27, a sign of cooling enthusiasm for the largest listing in history.

The stock has drifted lower over the past month even after being added to the Nasdaq-100 index, having initially surged 19% on its June 12 debut to a $2.1 trillion valuation.

With SpaceX confirming its full green-shoe option has already been exercised, underwriters have little remaining capacity to support the share price through open-market purchases.

Wall Street remains broadly bullish despite the dip: Morgan Stanley set a $300 price target and JPMorgan $225, though Morningstar is a notable outlier at just $63.

Investor attention now shifts to SpaceX’s next Starship test flight, expected as early as Thursday evening, a mission central to the company’s AI and satellite communications ambitions.

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