Morgan Stanley Upgrades ASML to ’Overweight’ with €950 Price Target - Semiconductor Giant Gets Bullish Boost
Chipmaking equipment leader ASML just scored a major Wall Street endorsement that's sending shockwaves through the semiconductor sector.
The Analyst Stamp of Approval
Morgan Stanley's upgrade to 'Overweight' signals deep conviction in ASML's positioning at the forefront of advanced lithography technology. The €950 price target represents one of the most aggressive forecasts on the street.
Lithography Dominance
ASML's extreme ultraviolet (EUV) systems remain the undisputed backbone of cutting-edge semiconductor manufacturing. With competitors struggling to match their technological edge, the company continues to command premium pricing power.
Market Implications
This vote of confidence comes as chip manufacturers race to expand capacity amid soaring demand for AI and high-performance computing applications. The timing couldn't be better for equipment suppliers positioned at the technological frontier.
Of course, Wall Street analysts have been known to upgrade stocks just in time for institutional clients to exit positions—but this particular endorsement carries unusual weight given Morgan Stanley's tech sector expertise. The real test will be whether ASML can maintain its monopoly-like margins when the next semiconductor downturn inevitably hits.
ASML’s strong support system vows to take its stock price to the highest level ever
Nigel van Putten, Equity Research Analyst at Morgan Stanley, and Lee Simpson, Managing Director and Senior Equity Analyst at the firm, weighed in on the topic. In a note, they highlighted several growth opportunities extending into 2027, citing their decision to upgrade ASML to an “overweight” rating as an example.
The analysts also projected that logic and memory chip maker advances will strengthen ASML’s business, positioning the company for gains over the next two years.
Meanwhile, the Dutch chip giant’s upgrade has occurred swiftly, as reports reveal that recently, the firm that produces advanced chip equipment had encountered hardship in securing considerable gains from the demand for AI.
Coincidentally, the upgrades from three analysts have taken place alongside the release of positive news from leading suppliers of AI computing resources, such as Oracle Corporation.
On the other hand, Nvidia’s $5 billion investment in Intel Corporation, which was made recently, has enabled the struggling US chipmaker to stabilize itself. Notably, Intel is ASML’s important client and has cut back on its spending for capital this year.
Analysts speculate that the Dutch Chip Giant’s increase in stock price might reach the highest levels ever recorded in history in the NEAR future. These remarks were made after its 14-day relative strength index exceeded 70, suggesting that the stock price might be too high.
This has sparked discussions among individuals. To address this, the company announced that the actual report might be released on October 15.
ASML’s CEO changes his growth prediction amid trade-related uncertainties
After predicting that sales WOULD significantly rise in 2026, ASML’s CEO Christophe Fouquet changed his prediction, citing obstacles such as trade conflicts and global tension in the market.
In his earlier prediction in October, Fouquet had convinced investors that 2026 would be a growth year, specifically for the semiconductor industry and ASML. However, this outlook became more cautious after the firm released its second-quarter results.
To explain his sudden shift in prediction, the CEO stated that they continued to experience increased uncertainties because of macroeconomic and geopolitical events. Therefore, according to Fouquet, although they were still preparing for growth in 2026, they could not confirm this.
Following these uncertainties, reports dated July 16 revealed that the Dutch firm’s shares had drastically dropped to €630.70, reflecting a decrease of 11%. This marked their biggest single-day decrease since January 27. Notably, this is not the first time ASML has experienced a decline. Over the past years, the company recorded a total loss of approximately €140 billion, worth $155 billion.
In the meantime, it is worth noting that ASML is the only chip producer with essential advanced lithography machines that produce chips for Apple’s smartphones and Nvidia’s AI accelerators. With this, the firm found itself in a tough position between its two largest markets, the US and China, last year due to their worsening relationship.
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