Bernstein on Monday raised his price target on ASML Holding NV (AS::NA) (NASDAQ: ASML) to €980.00 from €890.00, while maintaining an Outperform rating on the stock.
This adjustment reflects ASML's continued competitiveness and the company's confidence in the advancement of high NA extreme ultraviolet (EUV) technology, which is gaining momentum in both the memory and logic/foundry sectors.
ASML, a leading player in the semiconductor equipment industry, is on track to make technological advances and is expected to outperform its 2024 outlook. His 2025 outlook for the company also shows strong growth potential.
The company has seen particularly high investment from China, gaining significant market share in calendar year 2023. This is partly due to China directing a higher percentage of its spending to ASML's products.
The company's success in China casts doubt on its future trends, as it is unclear whether China will continue to allocate a higher share to ASML. Analysts are considering whether China will balance its equipment set by combining ASML's tools with tools from other suppliers, or whether current investment levels will continue.
This is especially important given that China lags behind in lithography technology compared to other types of equipment and may need to continue sourcing large quantities from ASML.
ASML's market position is strengthened by its unique products and adoption of high NA EUV technology. The company's strategic roadmap and the increasing adoption of its technology in various semiconductor areas suggest a positive outlook for the company's performance in the coming years.
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