Morgan Stanley significantly raised its price target on ASML, designating the stock a "Top Pick." The bank increased the target by 40% to €1,400 while maintaining its "Overweight" rating.
The increased confidence stems from two factors: expectations of higher foundry and memory capital expenditures in 2027, and better-than-feared demand originating from China. Morgan Stanley now forecasts ASML’s 2027 sales will reach approximately €46.8 billion. The firm anticipates that order intake in the coming quarters will confirm this projected strength.
This bullish note arrives as ASML’s stock continues a strong run, recently surpassing a $500 billion market capitalization. The positive sentiment is fueled by the booming AI sector and strong capital expenditure forecasts from key customers, including TSMC. ASML maintains its dominant position in the advanced semiconductor lithography market.