Dutch semiconductor equipment company ASML Holding (ASML) is set to invest roughly $1.5 billion (€1.3 billion) in French AI startup Mistral AI as part of its latest Series C funding round of about $2 billion. The investment will make ASML the largest shareholder and also secure a board seat in the rapidly growing AI firm, according to Reuters.
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Mistral Eyes Tech Independence
Mistral AI is one of Europe’s leading AI companies, competing directly with American giants such as OpenAI and Alphabet (GOOGL). The new funding round is aimed at strengthening its finances, reducing dependence on U.S. and Chinese AI models, and bolstering Europe’s technological independence. This round will raise Mistral AI’s valuation to around $11.7 billion, positioning it as Europe’s most valuable AI company.
Mistral already counts American chipmaker Nvidia (NVDA) among its investors, with Nvidia backing its $6 billion Series B round last year. The company was founded in 2023 by former Google DeepMind researcher Arthur Mensch and ex-Meta (META) researchers Timothée Lacroix and Guillaume Lample.
Here’s Why ASML Is Investing in Mistral AI
ASML supplies the most crucial chipmaking equipment to global semiconductor giants such as Taiwan Semiconductor (TSM) and Intel (INTC). It produces the world’s only extreme ultraviolet (EUV) lithography machines, each costing about $180 million, which are essential for producing the most advanced chips. By investing in Mistral AI, ASML stands to leverage advanced data analytics and AI capabilities to further optimize its chipmaking tools and potentially develop new products.
Is ASML Stock a Buy, Hold, or Sell?
Analysts remain divided about ASML’s long-term outlook. On TipRanks, ASML stock has a Moderate Buy consensus rating based on five Buys and four Hold ratings. The average ASML price target of $866.02 implies 10.8% upside potential from current levels. Year-to-date, ASML stock has gained 13.5%.
