New Street downgrades ASML on ‘risky setup’ post rally

New Street downgraded ASML (ASML) to Neutral from Buy with a EUR 790 price target The firm sees artificial intelligence capital expenditures tripling by 2030, requiring $130B of cumulative wafer fab equipment spending. However, New Street expects “peak acceleration this year and peak spending next year,” resulting in a “weak” outlook beyond 2026. With limited upside to 2026 estimates and wafer fab equipment valuations two to 12 turns above historic averages, the firm sees a “risky setup for the stocks.” As such, it downgraded ASML and keeps a cautious view on the sector.