ASML stock price target raised to EUR940 by UBS on AI-led growth

UBS has significantly raised its price target on ASML Holding NV to EUR940 from EUR750, maintaining a Buy rating, citing anticipated AI-led memory growth, better-than-expected smartphone and PC sales, and future high numerical aperture opportunities, which led to a 10-15% upward revision in 2026-2027 EPS estimates. This positive outlook is echoed by other major analysts, including Deutsche Bank, Mizuho, and Morgan Stanley, who have also upgraded ASML, contributing to the stock's 30% gain over the past month. Further bolstering its strategic position, ASML announced a €1.3 billion investment in Mistral AI to integrate AI applications into its lithography systems.

Analysis

A confluence of positive analyst revisions has significantly bolstered the investment case for ASML Holding NV. UBS raised its price target to EUR940, citing expectations for AI-driven memory growth and a stronger-than-anticipated recovery in smartphone and PC markets, leading to a 10-15% upward revision of its 2026-2027 EPS estimates. This sentiment is broadly shared, with Deutsche Bank, Mizuho, and Morgan Stanley also issuing upgrades and price targets ranging from EUR900 to EUR950, signaling strong institutional conviction. The optimistic outlook is underpinned by ASML's robust fundamentals, including a 26.41% revenue growth over the last twelve months, and has been reflected in the stock's 30% gain over the past month. Key forward-looking catalysts include anticipated positive developments in high numerical aperture (high NA) technology, which analysts believe will support further share price appreciation. Furthermore, the company's strategic EUR1.3 billion investment in Mistral AI to enhance its lithography systems underscores a commitment to maintaining its technological leadership.

Key Decisions for Investors

• The uniform bullish consensus from multiple major investment banks, with price targets suggesting significant upside, reinforces the case for maintaining or initiating a long position in ASML.
• Investors should closely monitor newsflow and company updates regarding the adoption of high numerical aperture (high NA) technology, as this is a primary catalyst cited for future growth and is central to the updated investment thesis.
• Given the stock's recent 30% appreciation in one month, investors considering new or additional positions should be mindful of valuation and may look for periods of price consolidation to establish a more favorable entry point.