ASML is positioned to benefit from the increasing demand for its lithographic manufacturing technology, particularly in the artificial intelligence industry. Bernstein has raised its price target for ASML's U.S.-listed shares to $2,623 from $1,971, indicating a potential upside of 48% based on Thursday's closing price.
Analyst David Dai noted that the firm has revised its topline forecasts upward due to an unprecedented expansion in AI-driven demand for advanced logic and dynamic random-access memory (DRAM) capacity. He highlighted that high numerical aperture extreme ultraviolet (HNA EUV) technology is expected to be adopted more quickly in DRAM production due to lower exposure costs compared to logic chips.
ASML, which supplies HNA EUV systems essential for manufacturing microchips, has seen its stock price increase by 123% over the past year, driven by the growing adoption of AI technologies. Following Bernstein's announcement, ASML shares rose by 3% in premarket trading.
The positive outlook aligns with the consensus among analysts, as all 19 covering ASML have rated the stock as a buy or strong buy