Why Bernstein Sees 2026–27 as “Large Years” for ASML

ASML Holding N.V. (NASDAQ:ASML) is among the AI Shares on the Market’s Radar. On January 5, Bernstein upgraded the inventory to “Outperform” from Market Carry out and raised its worth goal to €1,300 from €800. The agency sees a slew of optimistic catalysts forward for the European semis firm.

The agency has chosen ASML as its Prime Decide, pushed by accelerating reminiscence funding, stronger logic demand and a extra enticing valuation backdrop.

“We improve ASML to Outperform and make it our prime choose in EU semis for 2026.”

Analyst David Dai believes that ASML stands to profit probably the most from the restoration within the memory-chip (DRAM) market. He additionally famous how buyers are underestimating the brand new manufacturing that three largest DRAM producers are planning.

Collectively, the producers are may add as a lot as 250,000 wafers per thirty days of greenfield capability in 2026, he famous, whereas additionally dashing up the transition to the 1c node and creating demand for ASML tools.

“That is nice for ASML, as litho depth for 1c is 28% based mostly on our estimates, a lot larger than earlier nodes of 20–24%,” Dai wrote.

There’s additionally a diminished near-term threat from DRAM expertise adjustments.

Superior logic is seen as one other progress driver, with TSMC set to increase 3nm capability to 180-200,000 wafers per thirty days to handle AI demand. Collectively, these traits place 2026 and 2027 as “huge years for EUV and for ASML.”

ASML Holding N.V. (NASDAQ:ASML) develops and sells superior semiconductor tools, together with lithography, metrology, and inspection programs for chip manufacturing.

Whereas we acknowledge the potential of ASML as an funding, we consider sure AI shares provide better upside potential and carry much less draw back threat. When you’re in search of a particularly undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring pattern, see our free report on the greatest short-term AI inventory.

Disclosure: None.