ASML's Chipmaking Tools in High Demand Amid AI Boom: BofA Raises Price Target to EUR941.00

BofA Securities analyst Didier Scemama raised the price target on ASML Holding N.V. (NASDAQ:ASML) to EUR941.00 from EUR724.00 and maintained a Buy rating. The analyst sees stronger demand for ASML's chipmaking tools amid the AI boom and believes a potentially more competitive Intel in datacenters and PCs will be positive for semicap companies like ASML. ASML develops and sells advanced semiconductor equipment, including lithography, metrology, and inspection systems for chip manufacturing.

BofA Securities has significantly boosted its price target for ASML Holding N.V. (NASDAQ: ASML) to EUR941.00 from EUR724.00, maintaining a Buy rating. The upgrade is driven by the anticipated growth in demand for ASML's advanced semiconductor equipment, particularly in the AI sector ASML stock price target raised to EUR941 by BofA on Intel-Nvidia deal^[1].

The upgrade comes amidst a notable partnership between Nvidia and Intel, which includes a $5 billion equity injection and Intel's supply of custom x86 CPUs for Nvidia's AI infrastructure portfolio. This collaboration is expected to enhance Intel's competitiveness in both datacenters and PCs, thereby benefiting semiconductor capital equipment providers like ASML ASML stock price target raised to EUR941 by BofA on Intel-Nvidia deal^[1].

BofA Securities has also revised its revenue and earnings forecasts for ASML. The firm tentatively raised its calendar year 2027 revenue estimate from EUR35.8 billion to EUR39.2 billion and its earnings per share forecast from EUR29.92 to EUR34.18. These upgrades reflect the firm's expectations for higher extreme ultraviolet (EUV) and high-NA unit sales to Intel and SK Hynix ASML stock price target raised to EUR941 by BofA on Intel-Nvidia deal^[1].

The new price target is based on a 23x calendar year 2027 EV/EBITDA multiple, up from 20x previously, citing a more competitive client landscape following recent deals such as the Samsung/Tesla and Intel/Nvidia partnerships. Additionally, the firm anticipates revenue acceleration in 2027 due to several new fabs opening in the US ASML stock price target raised to EUR941 by BofA on Intel-Nvidia deal^[1].

The upgrade follows a series of bullish analyst calls, with Arete Research issuing its first buy rating on ASML in seven years. Analysts at J.P. Morgan maintain their top pick status, noting that ASML's worst quarter appears behind it. They also highlight the strong AI demand from key customers like Nvidia and hyperscale clients, which is driving equipment orders ASML Stock: Rallies as Analysts Turn Bullish on AI Chip Equipment Giant^[2].

ASML's stock has rallied significantly, soaring 6.6% on Monday after the Arete Research upgrade. The company's monopoly position in extreme ultraviolet lithography technology makes it essential for producing AI chips, further boosting its valuation ASML Stock: Rallies as Analysts Turn Bullish on AI Chip Equipment Giant^[2].

Looking ahead, ASML's valuation appears attractive, trading below its historical 30-35 times earnings multiple despite its dominant market position. The firm is expected to receive orders for its planned U.S. manufacturing capacity, with AI spending from Nvidia, Broadcom, and cloud providers remaining robust ASML Stock: Rallies as Analysts Turn Bullish on AI Chip Equipment Giant^[2].