ASML Holding shares edged higher this week, buoyed by a wave of bullish analyst revisions and a high-profile endorsement from Elon Musk that underscored the company’s pivotal role in the AI infrastructure buildout.
Analysts Raise Price Targets on Strong EUV Demand
Major financial institutions, including Bank of America and Morgan Stanley, lifted their price targets on ASML, citing strong visibility in extreme ultraviolet (EUV) lithography demand. BofA reiterated a Buy rating with a $2,268 price target, projecting that ASML could exceed the top end of its own 2030 guidance and reach €73 billion in revenue. In a bull-case scenario, the bank sees gross margins above 60%, EBIT margins of 50%, and earnings per share exceeding €90 by 2030.
Morgan Stanley also raised its target to €1,660, pointing to sustained EUV tool demand as semiconductor manufacturers expand capacity. The upgrades reflect a broad consensus that AI-related investments are still in early stages, with new fabrication plants and capacity expansions expected to drive equipment orders well into 2026 and beyond.
Musk Calls ASML ‘Europe’s Greatest Company,’ Set to Speak at Tech Conference
Adding momentum, Elon Musk wrote on X that “ASML should be treasured. It is arguably the greatest company in Europe.” The remark came ahead of Musk’s scheduled fireside chat with ASML CEO Christophe Fouquet at the company’s private technology conference in the Netherlands. Musk’s attendance is not ceremonial – he needs ASML’s EUV machines for Terafab, his massive $55–119 billion chip-making facility in Texas backed by Tesla, SpaceX, and xAI.
ASML stock traded at $1,734.19 on Monday, up 3.9% on the session and sitting just 3% below its all-time high. Year-to-date, the stock has returned 53%, making it one of Europe’s strongest performers in the AI infrastructure trade.
High-NA EUV Adoption and Export Restrictions in Focus
Despite the optimism, investors are watching adoption rates of next-generation High-NA EUV systems, which carry steep costs that make some chipmakers cautious about large-scale deployment. Export regulations also remain a risk, with potential restrictions on semiconductor technology exports that could impact parts of ASML’s addressable market.
Looking ahead, the market is focused on ASML’s July earnings report for confirmation of sustained order growth and margin strength. The company recently bought back 60,388 shares for approximately €79.4 million as part of its capital management program, further signaling confidence.
