Shares in ASML Holding (ASML), the Netherlands-based semiconductor equipment manufacturer, have jumped over 23% since the start of the year. Yet, analysts on Wall Street see its shares climbing by another 25% over the next 12 months, fueled by sustained demand for AI infrastructure.
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ASML is the world’s largest supplier of photolithography equipment to chipmakers and is widely described as the only company capable of producing extreme ultraviolet (EUV) machines. These tools use light to print ultra-fine circuitry on chips.
Why Analysts Remain Bullish on ASML
Recently, Bernstein analyst David Dai reaffirmed both his Buy rating and $1,971 price target on ASML stock, predicting about 50% upside. Dai noted that ASML stands to benefit as Dynamic Random-Access Memory (DRAM) makers race to expand capacity to meet surging demand for these volatile memory chips.
The analyst expects ASML to ship 44 EUV machines to DRAM makers by 2028, accounting for about 45% of its total EUV shipments. Dai said ASML remains his top pick for the semiconductor sector in Europe.
‘European AI Enabler’
Meanwhile, Goldman Sachs’ Alexander Duval also recently reiterated his Buy rating on ASML, setting a price target of about $1,670, suggesting roughly 22% upside. Duval pointed to billionaire CEO Elon Musk’s $25 billion Terafab chip-manufacturing project.
The analyst listed ASML alongside semiconductor equipment peers ASM International (ASMIY) and BE Semiconductor (BESIY) as “European AI enablers” that are well-positioned to take advantage of additional demand for equipment used to manufacture and package leading-edge logic and memory chips. In particular, he sees ASML as “the biggest beneficiary” of such demand increase due to its role as the only provider of EUV tools.
Is ASML a Good Stock to Buy?
On Wall Street, ASML Holding’s shares remain a Strong Buy based on analysts’ consensus rating. This breaks down to 11 Buys issued over the past three months.
In addition, the average ASML price target of $1,643.45 implies about 25% upside from current trading levels.
