ASML Holding (ASML.AS): Key takeaways from our AI & Semis Symposium 1 August 2025 | 6:16AM BST We hosted Jim Kavanagh, VP Investor Relation at ASML, as part of our AI & Semis Symposium on July 31st. Key takeaways include: 1) We continue to see strong EUV demand from AI-Logic applications, with scope for an acceleration in Memory adoption to fulfil higher performance requirements of AI demand, 2) While outlook for 2026 remains uncertain, we see an undemanding cadence of orders required to achieve next year's ...

Investment Rating - The report assigns a "Buy" rating to ASML Holding with a 12-month price target of €910, indicating an upside potential of 34.3% from the current price of €677.60 [10][13]. Core Insights - ASML's growth expectations for 2026 are supported by strong demand for leading-edge Logic and advanced Memory applications, alongside a recovery in trailing-edge spending, with a projected 8% year-over-year top-line growth [3][4]. - The sustainability of AI-related semiconductor demand is viewed positively, with expectations that AI will continue to drive demand for leading-edge chips [4][6]. - The report emphasizes the importance of order intake, noting that ASML requires quarterly orders of €4-5 billion to meet sell-side consensus estimates for 2026 [8]. Summary by Sections Key Drivers of Growth - ASML anticipates growth in 2026 driven by leading-edge Logic, advanced Memory applications (such as HBM), and a recovery in trailing-edge spending [3]. - The demand for advanced Memory remains robust, with Micron increasing its HBM capacity significantly [3][5]. AI Demand Impact - Investors are keen to understand the long-term sustainability of AI-related semiconductor demand, which has seen significant spending in recent years [4]. - Positive indicators from the AI ecosystem suggest a diversification of AI applications, supporting the demand for leading-edge semiconductors [6][7]. Order Cadence - The focus has shifted to the order intake required to meet revenue estimates for 2026, with ASML needing €4-5 billion in quarterly orders [8]. - A sequential improvement in orders could act as a positive catalyst for ASML's shares [8]. Lithography Intensity - There is an increasing interest in the trajectory of Lithography intensity as the industry transitions to Gate-All-Around architecture, with expectations of re-acceleration in layer growth post-transition [8][9]. - ASML's focus on cost-effective solutions is expected to drive growth in EUV layers across Logic and Memory applications [9].