On Thursday, ASML Holding NV (NASDAQ:ASML) stock hit a 52-week high, taking its market cap past the $500 billion psychological number.
Analyst Take On The Move
Morgan Stanley and RBC Capital are converging on a bullish view of ASML as rising AI-driven chip investment.
Morgan Stanley reinforced its bullish outlook on ASML, arguing the stock could climb as much as 70% in a best-case scenario. It is due to the chipmakers accelerating spending to support surging demand for artificial intelligence.
The bank ranks the Dutch semiconductor equipment maker among its top stock picks and said its confidence has strengthened after Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM), ASML’s largest customer, signaled that AI-related capital spending remains robust, Bloomberg reported on Friday.
RBC Sees AI, Memory And EUV As Key Tailwinds
Also on Wednesday, RBC Capital analyst Srini Pajjuri initiated coverage on ASML with an Outperform rating and a price forecast of $1,550.
The analyst views ASML as a key beneficiary of sustained AI-driven investment, even as concerns about an AI bubble linger.
He expects hyperscale capital spending to stay strong over the next 18 to 24 months, supporting continued demand for wafer fab equipment.
Pajjuri sees tight memory supply, rising adoption of high-bandwidth memory and the transition to more advanced Dynamic Random Access Memory (DRAM) nodes as major tailwinds for ASML’s tools, particularly as High Bandwidth Memory (HBM) growth lifts Extreme Ultraviolet (EUV) usage.
While infrastructure bottlenecks could delay some projects, the analyst does not see those constraints as negative for ASML.
He also points to favorable geopolitics and renewed competition at the leading edge as additional positives.
TSMC Capex Boost Strengthens Upside Case
Taiwan Semiconductor is strengthening the upside case for ASML by sharply increasing its capital spending to meet surging demand for AI chips, giving a direct boost to future orders for chipmaking equipment.
After Taiwan Semiconductor raised its 2026 capital expenditure plan to $52 billion–$56 billion—well above market expectations—investors pushed ASML’s market value past $500 billion for the first time.
The higher budget implies materially more spending on advanced manufacturing tools, where ASML plays a central role. ASML shares have already gained about 25% in 2026.
ASML Price Action: ASML Holding shares were up 1.46% at $1351.00 during premarket trading on Friday. The stock is trading near its 52-week high of $1358.00, according to Benzinga Pro data.
Photo via Shutterstock
Recent Comments