ASML: New 1000W EUV Light Source Strengthens Technology Moat and Supports 27% Upside Potential by 2026

Analyst Andrew Gardiner from Citi reiterated a Buy rating on ASML Holding NV and keeping the price target at €1,600.00.

Andrew Gardiner has given his Buy rating due to a combination of factors, notably ASML’s announcement of a new EUV light source capable of delivering 1000W, which is more than half again as powerful as current tools and significantly boosts wafer throughput for customers under near-fab conditions. This productivity jump strengthens ASML’s value proposition to chipmakers and supports higher system adoption, enhancing the company’s pricing power and profitability potential.

He also emphasizes that the technological refinements, such as increasing tin droplet frequency and using dual prepulses, create a clear roadmap toward even higher power levels of 1,500W and possibly 2,000W, reinforcing ASML’s long-term innovation edge. In his view, this deepened competitive moat and the ability to command better margins underpin a compelling upside case, reflected in an expected share price return of roughly 27% by late April 2026.

In another report released on February 20, Bernstein also maintained a Buy rating on the stock with a €1,600.00 price target.