ASML upgraded to Buy from Neutral at Rothschild & Co Redburn

Rothschild & Co Redburn upgraded ASML (ASML) to Buy from Neutral with a price target of EUR 1,200, up from EUR 900. The firm has turned positive on high numerical aperture extreme ultraviolet lithography due to “substantial improvements” in field stitching coincide with rising chiplet adoption for artificial intelligence compute applications. Rothschild’s analysis shows that lithography intensity will rise to 23% of wafer fabrication equipment spending in 2030 as gate-all-around transistors offer Dennard-like scaling. This will support ASML’s earnings outlook, the analyst tells investors in a research note.