Analysts Boost Price Targets for ASML Amid AI-Driven Demand

Market experts are growing increasingly bullish on ASML Holding NV, with major financial institutions raising their valuation targets for the semiconductor equipment leader. The Dutch company, which holds a monopoly on producing extreme ultraviolet (EUV) lithography machines, continues to be viewed as a fundamental pillar for the global chip industry. Its shares are trading close to record levels, supported by the sustained artificial intelligence boom.

In a significant move, JPMorgan elevated its price target for ASML to $1,275, a substantial increase from its previous estimate of $1,175. The bank’s analysts have designated the firm as their preferred selection within the semiconductor capital equipment sector. Following suit, Morgan Stanley also revised its outlook upward, setting a new target of $1,161.

The broader analyst consensus reflects this positive sentiment. Among 42 covering analysts, 20 currently advocate buying the stock, while only one recommends selling. The average price target stands at approximately $1,172, indicating that market researchers see further room for appreciation despite the equity’s strong performance year-to-date, which has seen it advance about 38%.

Strong Fundamentals Offset Geopolitical Headwinds

ASML’s operational performance provides a solid foundation for this optimism. The company reported third-quarter revenue of €7.5 billion. For the ongoing final quarter of 2025, management has provided a revenue guidance range between €9.2 billion and €9.8 billion.

Should investors sell immediately? Or is it worth buying Asml?

However, the company faces specific challenges. Chief Executive Officer Christophe Fouquet has moderated expectations for business in China, noting that due to stringent export controls, 2026 revenue from the region is likely to fall notably below prior-year levels. ASML is prohibited from shipping its most advanced EUV systems to Chinese customers. Despite this, the company has reaffirmed its long-term forecast for 2030, which includes a revenue target of up to €60 billion, demonstrating confidence in demand from other global markets.

Stock Split Speculation Gains Traction

With the share price at a high absolute level, speculation is mounting that ASML might consider a stock split. Such a move would make the shares appear more accessible to retail investors—a strategy previously employed successfully by other technology giants like Nvidia and Amazon to boost trading activity. It has been 25 years since the Dutch firm last executed a split.

Closing at €945.50 on Friday, the stock trades merely 3% below its 52-week high. Management recently confirmed that, despite geopolitical uncertainties, total revenue in 2026 is not expected to drop below 2025 levels, offering investors a degree of forecasting certainty.