ASML Named Top Semiconductor Pick for 2026 as Chip Demand Surges
Bank of America upgraded ASML Holding NV to its elite '25 Stocks for 2026' list, citing the Dutch firm's dominant position in extreme ultraviolet lithography systems. The bank raised its price target to €1,158 from €986, while JPMorgan boosted its target to $1,275.
ASML shares gained 1.9% to $1,108.78 as analysts projected shipment growth of 55 low-NA EUV tools in 2026 and 63 in 2027—exceeding prior estimates. The company's free cash FLOW is expected to double to €14 billion amid 30% earnings growth.
The bullish outlook reflects intensifying demand for advanced chipmaking equipment, particularly as DRAM manufacturers adopt more EUV layers. ASML currently trades at a premium 45.13 P/E ratio with a $436 billion market capitalization.