Morgan Stanley projects ASML's Q2 sales at €9 billion, 3% ahead of consensus, with EPS beating by 5%, driven by strong EUV/DUV commentary. TSMC is expected to report 68-69% gross margins, top/bottom-line beats, and raised guidance, with CoWoS capacity growth discussions. However, TSMC's CapEx may miss expectations due to ASML's physical EUV shipment shortages, while Co-Packaged Optics (CPO) faces conflicting data on delays, with a high-volume ramp unlikely before 2028 due to TSMC COUPE yield struggles.
Advanced packaging and lithography equipment remain supply bottlenecks, with TSMC's CoWoS capacity growth constrained by ASML's EUV shipments and CPO facing yield issues.