The ASML Holdings (ASML) price target was raised to a Street high of €1,302 at BofA, with the bank reiterating a Buy rating on the stock in a note Thursday, citing a growing confidence in €40bn revenue in 2025;
Top pick ASML is described as a “critical enabler” of the artificial intelligence (AI) infrastructure buildout.
“ASML remains irreplicable in the buildout of AI infrastructure with all AI processor and DRAM companies using EUV technology to manufacture their chips,” said the bank.
BofA raised its calendar year 2025 and 2026 revenue and EPS estimates for ASML by around 6% to 9% reflecting “higher confidence in higher demand for EUV tools as well as higher GM.”
“Our new CY25/26E revenue estimates are 10-7% above css while our EPS ests are 15-9% above css,” they explain. “ASML remains our top pick in EU Semicaps.”
The bank acknowledged that some concerns remain about foundry orders through the end of this year, but they believe that the pace of investment from all leading hyperscalers and enterprise customers in AI infrastructure leaves very little doubt that significant capacity needs to be added at the leading edge.
ASML is seen as being on track for €52 EPS in 2030, while BofA says its €65 bull case is possible.
“Assuming GM and OPEX in line with company guidance triangulates to CY30E EPS in the range of €40 (low scenario), €52 (mid) and €65 (high). At the midpoint this would imply an 11% CAGR 25-30E, justifying the current multiple of the stock,” they write.
