ASML is the leader in lithography systems for manufacturing semiconductors with 90% market share. Lithography is the process in which a light source is used to expose circuit patterns from a photo mask onto a semiconductor wafer. Lithography allows chipmakers to increase the number of transistors on the same area of silicon, with lithography historically representing a high portion of the cost of making cutting-edge chips. ASML outsources the manufacturing of most of its parts, acting like an assembler. ASML’s largest clients are TSMC, Samsung, Intel, SK Hynix, and Micron.

On Monday, the major indices were tempered by a 5.5% jump in crude oil (WTI) prices, but the large-cap indices still rose from 0.3% to 0.6%. Technology (XLK +2.5%) and Energy (XLE +1.8%) were the only two sectors that rose. Utilities (XLU -3%) were the weakest, followed by Consumer Discretionary (XLY -2%), and Real Estate (XLRE -1.6%). Healthcare (XLV) and Consumer Staples (XLP) fell 1.1%.

The mega-cap indices surged higher for a sixth straight week, and it feels like there is just no stopping this torrid advance. But when it seems like the market will never stop moving in a particular direction, a counter-trend move often kicks in. Indeed, it has to happen eventually.

Taiwan Semiconductor Manufacturing Company Ltd., headquartered in Hsinchu, Taiwan, was founded in 1987 and pioneered the pure-play foundry or 'merchant fab' model. The company serves both integrated semiconductor producers who outsource a portion of their production as well as 'fabless' semiconductor producers who outsource all manufacturing. Taiwan Semi serves over 500 semiconductor customers, producing more than 11,500 distinct products while providing a broad range of advanced, specialty, and advanced packaging technologies.