ASML Stock Rally Justified by AI-Driven Chip Expansion, Says Bernstein

Core Viewpoint - ASML Holding N.V. is experiencing significant positive momentum in the market, driven by favorable industry developments and an improved outlook for 2026, as highlighted by Bernstein's increased price target for the stock [1][2][3]. Group 1: Stock Performance and Market Sentiment - ASML's stock has rallied over 50% in the past two months due to positive developments in the semiconductor industry, including Samsung's fab restart and TSMC's U.S. capacity expansion [2]. - Bernstein raised ASML's price target to $935 from $743 while maintaining a Market Perform rating, citing an improved outlook for 2026 [1]. Group 2: Future Growth Projections - Bernstein anticipates ASML will guide growth in 2026, with increased demand for EUV lithography from the DRAM sector likely [3]. - The firm expects ASML's revenue from China to decline by 16% in 2026, a less severe drop than previously anticipated, due to stronger demand driven by China's chip production initiatives [3]. - Leading-edge semiconductor manufacturing buildout is projected to begin in 2025 and potentially accelerate in 2026 [3]. Group 3: Company Overview - ASML develops and sells advanced semiconductor equipment, including lithography, metrology, and inspection systems essential for chip manufacturing [4].