ASML Emerges as Wall Street’s Semiconductor Darling

The Dutch semiconductor equipment manufacturer ASML has become what market strategists describe as a “consensus favorite” on Wall Street. A succession of investment banks have recently reinforced their buy ratings, with some designating the stock as their top selection. With shares surging nearly 49% since the start of the year, the sustained analyst optimism warrants closer examination of the underlying drivers.

Unmatched Market Position Drives Bullish Forecasts

Goldman Sachs has presented one of the most optimistic outlooks, suggesting that in their most favorable scenario, ASML could more than double its revenue expectations for 2030. This projection hinges on the company’s monopoly in Extreme Ultraviolet (EUV) lithography—the essential technology for manufacturing advanced chips. The investment bank anticipates demand for up to 104 EUV machines by 2030, potentially driving a 59% revenue increase above the midpoint of the company’s own forecast. Goldman Sachs has established a price target of €1,050.

Morgan Stanley contributed to the positive sentiment on November 25 by naming ASML its “Top Pick” among semiconductor equipment providers, a declaration that provided immediate upward momentum for the share price.

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

Multiple Growth Catalysts Identified

Bank of America Securities maintains its buy recommendation with a €986 price objective. Following discussions with CEO Christophe Fouquet and Head of Investor Relations Marcel Kemp, the bank highlighted several key growth drivers:

• DRAM Supply-Demand Imbalance: Strong orders for capacity expansions are projected for 2027
• Increasing EUV Layers: The transition to the DRAM-1c node will require more EUV layers compared to the 1b node
• Logic Expansion: Continued build-out of 2-nanometer capacity throughout 2026 and 2027

A potential headwind remains: sales to China are expected to decline significantly in 2026. However, Bank of America sees recovery potential beginning in 2027 as memory and logic chip manufacturers establish new fabrication facilities.

Market Performance Validates Confidence

ASML’s stock performance continues to reinforce analyst confidence. On November 28, shares closed at €903.40 in Amsterdam, marking a 0.69% daily gain, while on the Nasdaq, the stock advanced 1.83% to $1,060. The nearly 49% year-to-date appreciation positions ASML as a clear sector outperformer, with recent analyst commentary suggesting the rally may have further room to run.