ASML stock surges 123% as Bernstein raises price target to $2,623 on AI-driven semiconductor demand

This semiconductor stock has more than doubled in a year. Bernstein sees more gains ahead

ASML's lithographic manufacturing technology could gain traction in part of the artificial intelligence industry, meaning the stock could see strong returns the near future, according to Bernstein. The investment firm has an outperform rating on ASML. It raised its price target on U.S.-listed shares to $2,623 from $1,971, implying 48% upside from Thursday's close. "We materially increase our ASML topline forecasts following the unprecedented AI-driven expansion in both advanced logic and DRAM capacity," analyst David Dai said Monday in a note to clients. "High Numerical Aperture Extreme Ultraviolet [HNA EUV] will likely be adopted first in [Dynamic Random-Access Memory] than for logic due to lower cost of exposure for DRAM." ASML 1Y mountain ASML 1-yr chart ASML is the major supplier of high numerical aperture extreme ultraviolet lithography, a manufacturing technology that is used to make memory solutions such as DRAM and high-bandwidth memory that power AI models. Those HNA EUV systems etch patterns onto silicon wafers, creating the foundation for microchips, or a critical component of AI. Shares of ASML have gained 123% over the past year as artificial intelligence adoption has widened, increasing interest in the company's semiconductor manufacturing solutions. The stock advanced 3% in the premarket Monday following the target increase. Bernstein's call falls in line with consensus on the Street. All 19 analysts covering ASML have a buy or strong buy on the stock, LSEG data shows.

Bernstein raises ASML stock price target to $2,623 on AI demand By Investing.com

Investing.com - Bernstein SocGen Group raised its price target on ASML Inc. (NASDAQ:ASML) to $2,623 from $1,971 on Monday while maintaining an Outperform rating. The stock currently trades at $1,850, up 124% over the past year, reflecting strong investor confidence in the semiconductor equipment maker's growth trajectory. The firm increased its revenue forecasts for the semiconductor equipment maker following what it described as an unprecedented AI-driven expansion in advanced logic and DRAM capacity. Bernstein raised its EUV shipment forecasts to 91 systems in 2027 from a prior estimate of 86 systems, and to 113 systems in 2028 from 87 systems previously. The firm now expects EUV revenue to grow at a 30% compound annual growth rate, reaching €42.7 billion by 2030, more than 30% above street estimates. Bernstein also revised its DUV estimates upward and expects DUV revenue to reach €20 billion in 2030 from €13 billion in 2026. Bernstein's 2028 earnings per share estimate of €67 stands 35% above consensus. The firm expects ASML revenue to reach €80 billion by 2030, representing a 20% compound annual growth rate, and earnings per share of €97 by 2030, a 31% compound annual growth rate. The firm raised its target price-to-earnings multiple to 40 times from 35 times, noting ASML trades at trough valuation versus peers. The company currently trades at a P/E ratio of 63.3, and InvestingPro analysis suggests the stock is overvalued relative to its Fair Value. Investors can access deeper insights through ASML's comprehensive Pro Research Report, available alongside 16+ additional ProTips. The new target price translates to €2,300. In other recent news, ASML Holding NV has been highlighted in several developments. The company is addressing potential supply constraints related to new projects, such as Elon Musk's Terafab, as stated by CEO Christophe Fouquet. In terms of financial outlook, BofA Securities reiterated a Buy rating on ASML, maintaining a price target of $2,268, and noted the company's 2030 guidance with projected sales between €44 billion and €60 billion. Additionally, BofA increased its price target to €1,921, citing a positive outlook on EUV capacity. Morgan Stanley also raised its price target for ASML to €1,660, driven by expected demand for EUV tools and projections for tool shipments in the coming years. Meanwhile, Nikon has entered the semiconductor photolithography equipment market with lower-priced offerings, aiming to challenge ASML's market dominance. Nikon's strategy focuses on providing competitive pricing while maintaining profitability, as shared by President Yasuhiro Ohmura. These recent developments reflect the dynamic landscape in which ASML operates, with both opportunities and competitive pressures shaping its business environment. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.