ASML Holding NV Soars 3.14% on UBS Upgrade

On September 5, 2025, ASML Holding's stock surged by 3.14% in pre-market trading, reflecting a strong bullish sentiment among investors.

UBS has upgraded ASML Holding NV to a 'Buy' rating, raising its price target to €750 from €660. This move is driven by the bank's optimism about ASML's potential as a "quality compounder," with expectations of a 20% EPS CAGR from 2026 to 2030. The upgrade is supported by ASML's impressive 26.4% revenue growth and a 52.5% gross margin over the past year.

Analysts have highlighted several key growth drivers for ASML, including the anticipated 2027 inflection point from TSMC’s A14 node production and the adoption of High NA technology. These factors are expected to drive significant demand for ASML's advanced lithography solutions. Additionally, ASML's strategic shift towards higher-priced EUV models and revenue from installed base upgrades are seen as positive catalysts for future growth.

Despite mixed Q2 results, ASML has reaffirmed its 2025 sales targets, maintaining a 15% year-over-year growth outlook. This commitment to long-term targets has reinforced investor confidence in ASML's leadership position in the advanced lithography market. The company's operational resilience is further underscored by recent Q2 bookings of €5.5 billion and narrowed sales guidance to €30-35 billion.