ASML Shares Get Bullish Boost as Bernstein Raises Price Target on Strong 2026 Outlook
ASML Holding NV (NASDAQ:ASML), the Dutch maker of critical chipmaking machinery, received a significant vote of confidence from Wall Street this week. Bernstein analyst David Dai raised his price target on the company from $1,642 to $1,911, maintaining an Outperform rating. The move follows ASML's recent update to its 2026 financial outlook and a report of record-breaking quarterly orders.
Dai's analysis suggests the stock's recent dip—despite strong Q4 2025 results—was driven by transient concerns over capacity margins and profit-taking, presenting a strategic entry point for investors. ASML reported $15.8 billion in new orders for the quarter, dramatically surpassing the Visible Alpha consensus estimate of $7.56 billion. This surge is largely attributed to soaring demand for advanced semiconductors, fueled by the global expansion of artificial intelligence infrastructure and data centers.
"The order intake is a clear leading indicator," said a Citi analyst, who highlighted the figures as early evidence of a robust industry upcycle. According to LSEG data, ASML shares have climbed roughly 32% year-to-date and have nearly doubled over the past 12 months. The stock currently trades at about 41 times the 2026 earnings forecast of $12.57 billion. The median analyst price target sits at $1,622.50, implying a potential upside of over 14% from recent levels.
ASML's dominance in extreme ultraviolet (EUV) lithography systems makes it a cornerstone of the global semiconductor supply chain. Its technology is essential for producing the most advanced chips, positioning the company as a direct beneficiary of the AI boom and broader digitalization trends.
Market Voices
Michael R., Portfolio Manager: "This isn't just about one quarter. ASML's guidance confirms the multi-year growth trajectory for leading-edge logic and memory. They are the undisputed bottleneck and enabler for the entire industry."
Sarah Chen, Tech Analyst: "The valuation is steep, but it reflects a premium for an unassailable monopoly in EUV. Their order book visibility into 2026 and beyond justifies the bullish targets."
David Kroft, Independent Trader: "It's pure hype. A 100% run-up in a year, trading at 40x+ earnings? This is a classic bubble stock. The moment capex slows, this house of cards comes down. Analysts are just chasing momentum."
Priya Sharma, Semiconductor Industry Veteran: "The numbers speak for themselves. $15.8B in orders is unprecedented. This reflects real, tangible demand from foundries rushing to build capacity for AI chips. The cycle has legs."