ASML Stock Gains Over 5% — Why Bernstein Thinks ASML Holding Can Keep Climbing After Nearly 140% Run In The Past Year

The brokerage boosted its price target after sharply raising revenue forecasts on surging AI-driven chip manufacturing demand.

• Bernstein lifted its price target and expects AI to accelerate demand for advanced logic chips and memory, particularly DRAM capacity.
• Bernstein said ASML’s lithographic manufacturing technology could gain further traction across parts of the artificial intelligence industry,
• Koyfin data shows Wall Street remains bullish on ASML, with 38 of 43 analysts maintaining ‘Buy’ or ‘Strong Buy’ ratings.

Shares of ASML Holding NV (ASML) surged nearly 5.5% on Monday after Bernstein significantly raised its price target on the semiconductor equipment maker. The brokerage cited an accelerating AI-driven investment cycle and rising lithography demand fueled by unprecedented expansion in advanced logic and DRAM capacity.

Adding to the positive sentiment, SK Hynix said it plans to use proceeds from its planned U.S. IPO to expand its chip manufacturing facilities in South Korea and purchase chipmaking equipment, including ASML's extreme ultraviolet (EUV) scanners, reported The Wall Street Journal.

ASML Price Target Raised By Bernstein

Bernstein maintained its Outperform rating on ASML and raised its price target on the U.S.-listed shares to $2,623 from $1,971, implying 48% upside from Thursday’s close.

Analyst David Dai said the firm had materially increased its revenue forecasts for ASML following the unprecedented AI-driven expansion in both advanced logic and dynamic random-access memory (DRAM) capacity, according to CNBC.

“We materially increase our ASML topline forecasts following the unprecedented AI-driven expansion in both advanced logic and [dynamic random-access memory] capacity,” Dai wrote in a note to clients. “[High numerical aperture extreme ultraviolet] will likely be adopted first in DRAM than for logic due to lower cost of exposure for DRAM.”

AI Drives Demand For Advanced Lithography

ASML is the major supplier of high numerical aperture extreme ultraviolet lithography, or HNA EUV, a manufacturing technology used to make memory solutions such as DRAM and high-bandwidth memory that power AI models. These HNA EUV systems etch patterns onto silicon wafers, creating the foundation for microchips, a critical component of AI, reported CNBC.

Bernstein said ASML’s lithographic manufacturing technology could gain further traction across parts of the artificial intelligence industry, supporting strong returns for the stock in the near future.

ASML Stock: What Stocktwits Retail Sentiment Says

On Stocktwits, retail sentiment for ASML was ‘extremely bearish,’ while message volume was ‘normal’ at the time of writing. Over the past 30 days, message volume for the stock has surged 250%, while the ticker’s watcher base has risen 2.1% in the same period, indicating steady growth of retail interest in the stock.

Bernstein’s positive view is broadly in line with Wall Street sentiment. According to data from Koyfin, 38 of the 43 analysts covering ASML currently have a ‘Buy’ or ‘Strong Buy’ rating on the stock.

The ASML stock has surged nearly 140% over the past year and 75% year-to-date as artificial intelligence adoption has widened, increasing interest in the company’s semiconductor manufacturing solutions.

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