ASML: Dominant EUV Leader Trading at Only a Modest Premium with Backlog-Driven Long-Term Upside

Krish Sankar, an analyst from TD Cowen, maintained the Buy rating on ASML Holding NV. The associated price target remains the same with €1,500.00.

Krish Sankar has given his Buy rating due to a combination of factors that highlight ASML’s strategic position in advanced semiconductor manufacturing and AI enablement. He views ASML’s dominance in EUV lithography, coupled with its role in enabling leading-edge foundry and DRAM scaling, as a durable advantage that typically justifies a valuation premium versus large U.S. peers.

Despite this, the stock is currently trading at only a modest premium after a sharp compression from prior levels, creating what he sees as an attractive entry point given that the long-term thesis remains intact. He also emphasizes a robust $39B backlog, growing adoption of EUV in DRAM, expectations for a rebound in leading-edge WFE spending, and improving performance and uptime of High-NA tools, all of which support stronger growth and profitability beyond near-term market concerns.

In another report released on March 3, UBS also maintained a Buy rating on the stock with a €1,500.00 price target.