ASML hits record high on AI boost — and analysts see plenty of room to run

Core Viewpoint - ASML Holding NV has reached record highs in its stock price, driven by strong earnings from TSMC, indicating robust demand for advanced semiconductor manufacturing equipment [2][4]. Group 1: Company Performance - ASML's shares have increased approximately 7% following TSMC's earnings report, contributing to a market capitalization of around 450 billion euros ($522 billion) [2]. - The stock has rallied 25% year-to-date in 2026, marking significant growth for the company [2]. Group 2: Market Outlook - Morgan Stanley projects a potential 70% surge in ASML's stock price, estimating it could reach up to 2,000 euros if tech valuations continue to rise and profits exceed expectations [3]. - The price target set by Morgan Stanley for ASML is 1,400 euros, reflecting a bullish outlook on the company's future performance [3]. Group 3: Industry Demand - Increased capital expenditures (capex) for foundries and memory, along with better-than-expected demand from China, are expected to drive higher earnings for ASML in FY27 [4]. - TSMC's capex guidance has significantly surpassed prior expectations, suggesting near-term upside for ASML as advanced manufacturing tools become essential for efficiency [4].