Analysts Bullish on ASML: TD Cowen Lifts Price Target to €1,500 on Surging EUV Demand
In a significant vote of confidence for the semiconductor capital equipment sector, analysts at TD Cowen have raised their price target for ASML Holding N.V. (NASDAQ: ASML) to €1,500, up from a previous €1,000, while reiterating a 'Buy' rating. The move underscores the firm's optimism around ASML's pivotal role in enabling next-generation chip manufacturing, particularly for artificial intelligence applications.
The adjustment follows ASML's reported fourth-quarter bookings of €13.2 billion, which dramatically surpassed analyst expectations of €6.32 billion. The company's sales guidance for 2026 also exceeded estimates, fueled by what TD Cowen describes as "robust EUV momentum." Extreme Ultraviolet (EUV) lithography machines, essential for producing the most advanced semiconductors, remain in high demand as chipmakers race to scale production for AI data centers and other high-performance computing needs.
"Capacity expansion is a key focus, but management has been clear: ASML is not the bottleneck," the TD Cowen note stated. The firm highlighted that ASML's capacity outlook for the coming year shows a wide but achievable range, tied directly to immersion tool capacity and the preparedness of its customers—global giants like TSMC, Samsung, and Intel—to receive and install the complex machinery.
This analyst upgrade reflects a broader consensus that ASML, with its near-monopoly on EUV technology, is a critical enabler of the global AI infrastructure build-out. While the stock has seen substantial appreciation, many on Wall Street see its fundamentals as supported by a multi-year order backlog and technological moat.
Market Voices: A Range of Perspectives
Michael Chen, Portfolio Manager at Horizon Tech Fund: "This target revision is a logical acknowledgment of the structural demand shift. ASML isn't just a chip stock; it's the company that sells the picks and shovels in this AI gold rush. Their guidance suggests the order strength is sustainable."
Dr. Elena Rodriguez, Semiconductor Industry Analyst: "The €1,500 target is aggressive but grounded in the booking numbers. The real story is the lack of capacity bottlenecks they mention. If ASML can execute on its ramp-up plans, it de-risks the entire advanced node roadmap for its clients."
David K. Miller, Editor of 'The Skeptical Investor' Newsletter: "This is classic bubble signaling. A 50% price target hike on a stock already trading at astronomical multiples? It reeks of irrational exuberance. The entire sector is priced for perfection, ignoring cyclicality. When the AI spending wave slows, ASML will be the first to feel the contraction."
Sarah Jensen, Chief Technology Officer at a Cloud Infrastructure Firm: "As a buyer of these advanced chips, this is reassuring news. Strong ASML execution means our hardware partners can meet their roadmaps. It's a positive signal for the entire tech ecosystem's growth capacity over the next two years."