ASML (ASML) Positioned for Growth as Citi Identifies AI Demand as Primary Catalyst for 2026 Semiconductor Equipment Outlook

Core Viewpoint - ASML Holding is positioned as a strong investment opportunity for the next decade, driven by AI demand and favorable market conditions in the semiconductor equipment sector [1][3]. Price Target Adjustments - Citi analyst Andrew Gardiner raised ASML's price target to EUR 1,200 from EUR 1,050 while maintaining a Buy rating [1]. - Deutsche Bank also increased its price target for ASML to EUR 1,150 from EUR 1,000, keeping a Buy rating [2]. - Bank of America raised its price target to $1,331 from $1,092, highlighting FY2027 as a critical inflection point for the company [3]. Market Outlook - Citi anticipates that AI-driven demand will be a primary catalyst for growth in the European semiconductor equipment sector, leading to positive earnings revisions across the industry [1]. - Bank of America expects an increase in lithography intensity as ASML captures a larger share of spending in the DRAM market, with profit margins projected to widen due to a favorable product mix [3]. Company Overview - ASML Holding provides lithography solutions for the development, production, marketing, sales, upgrading, and servicing of advanced semiconductor equipment systems [4].