ASML Re-Rated as Top 2026 Chip Pick as BofA and JPMorgan Hike Price Targets
Analysts point to rising lithography intensity with EUV adoption across memory as well as foundry markets.
Overview
- Bank of America named ASML a top semiconductor pick for 2026 and raised its target to €1,158, while JPMorgan lifted its target to $1,275 as shares gained about 1.9% to $1,108.78.
- BofA projects shipments of 55 low-NA EUV tools in 2026 and 63 in 2027, reflecting a stronger multi-year demand outlook.
- BofA forecasts €7.4 billion in Q4 2025 orders versus roughly €6 billion consensus, with DRAM and foundry customers driving the pipeline.
- Free cash flow is projected to double to €14 billion, and ASML plans sizable shareholder returns including roughly €15.5 billion in 2026 buybacks and a higher dividend.
- ASML will stop reporting bookings beginning in Q1 2026 and will instead disclose backlog maturity and end-market dynamics to guide investors on order visibility.