ASML stock has seen notable price gains as semiconductor company ASML Holding NV (AS:) (NASDAQ:) has emerged as a significant player as rising expectations for artificial intelligence (AI) fuel the rally I'm witnessing.
ASML stock has soared more than 34% this year, proving the company's outlook is positive. This outlook is driven by the growing demand for the company's products and technology in the AI space, a trend that is expected to continue.
This proliferation of AI companies not only strengthens ASML's position, but also provides a boost to the industry as a whole.
ASML Stock Price Prediction – Goldman
Analysts at Goldman Sachs said in a note to clients this week that their 2025 bull/bear scenario analysis suggests a favorable risk-reward bias driven by AI tailwinds.
Following ASML's recent strong share price performance, many investors are focused on how well the risk-reward level remains. Based on conversations with investors, Goldman Sachs analysts said discussions have shifted to ASML's 2025 results, as 2024 revenue is largely locked in by current order backlog.
“In particular, our discussions will focus on the possibility that EUV shipments in 2025 will change more rapidly than expected (such as AI-related tailwinds), the degree of sustainability of China's currently very strong DUV spending, and the magnitude of the change in base management returns,” the investment bank explained.
It added: “Following constructive data points in both markets, we continue to expect ASML to benefit from AI tailwinds and strength in Chinese demand in the coming quarters.”
The company's fundamental view is that China's spending in 2025 will be significantly higher than 2022 levels, given China's more aggressive ambitions in semi-self-sufficiency over the past year or two. It is said that it will be done. However, they expect a modest decline compared to 2023 levels, as China's exceptionally strong spending growth rate is difficult to compare.
“High NA adoption announcements remain an important long-term catalyst for share prices, but in our view, high NA offers more upside/downside room for group sales in 2025 than EUV/DUV. “We believe the target is small,” Goldman Sachs said.
The company has given the stock a “buy” rating and reiterated its price target of 1,070 euros per share. The company sees ASML's first-quarter results to be announced on April 17 as “the next big catalyst for the stock,” with investors anticipating quarterly orders as well as demand for cutting-edge logic/foundry space. I think they will pay attention to the commentary on the environment.
Additionally, the investment bank said there continues to be upside risk to its base-case forecast, saying “a strong future pace of quarterly orders is needed to reach the midpoint of our 2025 revenue guidance.” Looking.
