HSBC Raises ASML Price Target to EUR1,018 Ahead of September-Quarter Results

Core Viewpoint - ASML Holding N.V. is gaining attention as a trending AI stock, with HSBC raising its price target to EUR 1,018 from EUR 809 while maintaining a Buy rating ahead of the company's September quarter results [1][2]. Group 1: Financial Performance and Expectations - The firm anticipates ASML's September quarter results and December quarter guidance to align with expectations, with management likely to discuss demand trends extending into 2026 [2][3]. - ASML is projected to achieve 6% revenue growth in 2026, with revenue and operating income estimates 3%-5% above consensus forecasts [2][3]. - The analysis indicates that ASML requires EUR 7.8 billion in orders in the second half of 2025 to meet forecasts, with September quarter orders of approximately EUR 4 billion viewed as supportive of 2026 expectations [3]. Group 2: Market Sentiment and Demand Trends - Recent positive newsflow supports the view that ASML can deliver revenue growth in 2026, shifting the narrative from no growth to growth, which may lead to a valuation re-rating [3]. - The company is expected to benefit from strong demand signals and DRAM capacity expansion, contributing to overall optimism regarding its stock performance [2][3].