ASML’s lithographic manufacturing technology could gain traction in part of the artificial intelligence industry, meaning the stock could see strong returns the near future, according to Bernstein. The investment firm has an outperform rating on ASML. It raised its price target on U.S.-listed shares to $2,623 from $1,971, implying 48% upside from Thursday’s close. “We materially increase our ASML topline forecasts following the unprecedented AI-driven expansion in both advanced logic and [dynamic random-access memory] capacity,” analyst David Dai said Monday in a note to clients. “[High numerical aperture extreme ultraviolet] will likely be adopted first in DRAM than for logic due to lower cost of exposure for DRAM.” ASML 1Y mountain ASML 1-yr chart ASML is the major supplier of high numerical aperture extreme ultraviolet lithography, or HNA EUV, a manufacturing technology that is used to make memory solutions such as DRAM and high-bandwidth memory that power AI models. Those HNA EUV systems etch patterns onto silicon wafers, creating the foundation for microchips, a critical component of AI. Shares of ASML have gained 123% over the past year as artificial intelligence adoption has widened, increasing interest in the company’s semiconductor manufacturing solutions. The stock advanced 3% in the premarket Monday following the target increase. Bernstein’s call falls in line with consensus on the Street. All 19 analysts covering ASML have a buy or strong buy on the stock, LSEG data shows.
ASML has more than doubled in a year. Bernstein sees more gains ahead
