Morningstar raised its fair value estimate for ASML. The firm forecasts strong years for semiconductor equipment in 2027 and 2028.
This revision is driven by significant fab expansions from major clients. TSMC, for instance, is expanding its Arizona campus and Taiwan hubs. These expansions aim to meet the high demand for AI chips.
The analysis also highlights a potential shortage in memory capacity that could last until 2028. This shortage is expected to fuel further demand for ASML’s lithography systems. Consequently, Morningstar increased its revenue estimates for ASML for the 2026-2028 period.
Morningstar projects that TSMC alone might order up to 40 Low NA EUV systems in 2026.