Wall Street sets ASML stock price for next 12 months

While it may not be a name as recognizable as Nvidia (NASDAQ: NVDA) or Advanced Micro Devices (NASDAQ: AMD), ASML Holdings (NASDAQ: ASML) is, nonetheless, a crucial player in the semiconductor industry and a key enabler of the ongoing artificial intelligence (AI) boom.

In recent years, the Dutch company emerged not only as the main supplier for chipmakers worldwide but also as the only supplier of extreme ultraviolet lithography (EUV) photolithography machines – contraptions necessary to produce the highest-end semiconductors.

As recently as February 9, ASML made another splash as it gave journalists a tour of its newest High-NA extreme ultraviolet system – a €350 million ($380 million) machine built for the needs of the AI boom – sparked by the release of OpenAI’s large-language model (LLM) ChatGPT and now poised to receive another massive boost to the tune of up to $7 trillion.

Analysts overwhelmingly consider ASML a strong buy

Given ASML’s positioning and the recent developments coming from the company. It perhaps isn’t surprising that analysts overwhelmingly consider its stock a “buy.” In fact, out of the 39 experts analyzed by TradingView, as many as 24 rate the firm as a “strong buy” and another 2 as a “buy.’

Perhaps the most bullish notable analyst at press time is Susquehanna’s Mehdi Hosseini, who, in late November, upgraded his forecast to $1,1000, while Srini Pajjuri of Raymond James updated his prediction twice in the same week. The latest of these upgraded the estimate to $1,000 per share. Both analysts maintain a “strong buy” rating.

While the bullish majority is significant, it is important to note that the stance is not unanimous. 11 experts rate ASML as a “hold,” while 2 believe selling is the better call.

ASML analyst rating. Source: TradingView

What may be more surprising, given the recent updates from the company and the fact that even the more conservative forecasts see the generative AI sector surging to $100 billion, is that the average price target of $917.80 actually constitutes a 3.35% downside from the current price of $949.60.

On the other hand, while the low estimate of $714.81 would constitute an even greater downside of 24.73%, the high price target of $1,112 would see ASML rally another 17.10%.

ASML price analysis

No matter what the future might hold, ASML stock has been doing little other than rising since the final quarter of 2022. In the last 52 weeks, for example, the shares are up 42% while they rose 32.46% since January 1.

ASML 1-year stock price. Source: Google

ASML has also been doing well in the short term as it is up 33.14% in the last 30 days, and as much as 7.42% in the last week. Finally, the last full trading day, Friday, February 9, saw the stock continue its rise, adding a full $26.66 to each share – 2.89%.

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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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