ASML (ASML) Downgraded to Neutral as Analyst Sees Peak AI Spending by 2026

Core Viewpoint - ASML Holding N.V. has been downgraded to "Neutral" by New Street due to concerns about its growth prospects beyond 2026, despite strong near-term demand driven by AI [1][3]. Group 1: Company Overview - ASML develops and sells advanced semiconductor equipment, including lithography, metrology, and inspection systems for chip manufacturing [4]. Group 2: Market Outlook - The firm warns of weak growth prospects for ASML, even though there is robust near-term demand for AI, with AI capital expenditures expected to triple by 2030, necessitating an estimated $130 billion in cumulative wafer fab equipment spending [2]. - New Street anticipates "peak acceleration this year and peak spending next year," leading to a weak outlook for ASML beyond 2026, citing near-term uncertainty and valuations significantly above historic averages [3].