Why UBS and Goldman Sachs Are Bullish on ASML Stock Right Now

TLDR

• ASML stock rose 2.7% on May 21, trading as high as $1,601.79 intraday
• UBS named ASML its top European semiconductor pick and raised its price target; Goldman Sachs reiterated a Buy rating and lifted its target
• ASML’s CEO said semiconductor supply should stay tight as AI, satellite, and robotics demand outpaces capacity
• ASML signed an MoU with Tata Electronics to support India’s first commercial 300mm semiconductor fab in Dholera, Gujarat
• Q1 2026 results showed €8.8 billion in net sales, a 53% gross margin, and €2.8 billion in net income

ASML (ASML) stock climbed 2.7% on Thursday, May 21, hitting an intraday high of $1,601.79 before closing around $1,592.00. The prior close was $1,550.13. Volume came in at roughly 1.35 million — about 26% below the daily average.

ASML Holding N.V., ASML

The move came on a wave of analyst upgrades. UBS named ASML its top pick in European semiconductors and raised its price target, pointing to upside from the AI chip boom and stronger earnings estimates.

Goldman Sachs also reiterated a Buy rating and increased its price target, adding to the bullish momentum. Barclays separately upgraded the stock to Buy.

The consensus analyst rating sits at Moderate Buy, with a price target of $1,504.38 — below where the stock is currently trading.

ASML also got a technical signal last week. The stock flashed a “golden cross” and broke above its 20-day moving average, which traders often treat as confirmation of short-term upward momentum.

The stock now trades well above both its 50-day moving average of $1,424.03 and its 200-day moving average of $1,291.56.

CEO Points to Tight Chip Supply

ASML’s CEO said semiconductor supply should remain tight as demand from AI, satellites, and robotics continues to outpace industry capacity. That keeps chip equipment orders in focus.

The comments reinforce why analysts remain constructive on the stock. ASML is widely seen as a “picks and shovels” play on AI — it makes the lithography machines chipmakers need to produce advanced processors.

On the fundamentals side, ASML reported Q1 2026 net sales of €8.8 billion, a gross margin of 53%, and net income of €2.8 billion. For Q2 2026, the company guided for net sales of €8.4 billion to €9.0 billion and a gross margin between 51% and 52%.

The most recent quarterly earnings showed EPS of $8.28, revenue of $10.15 billion, return on equity of 48.69%, and a net margin of 27.65%. Analysts forecast full-year EPS of $37.10.

Tata Electronics Partnership in India

On May 16, ASML signed a Memorandum of Understanding with Tata Electronics to support the development of India’s semiconductor manufacturing ecosystem.

The deal covers the deployment of ASML’s advanced lithography tools for Tata’s upcoming 300mm fab in Dholera, Gujarat — one of India’s first commercial-scale chip plants.

The partnership is part of a broader push between India and the Netherlands to collaborate on critical technologies including semiconductor manufacturing.

The Dholera fab is still in ramp-up phase, so near-term revenue impact from this deal is limited. Analysts flagged it more as a long-term growth story than an immediate earnings driver.

ASML carries a market cap of around $626 billion, a PE ratio of 57.10, and a PEG ratio of 1.20. Institutional investors own about 26% of the stock.

Weiss Ratings upgraded ASML from Hold to Buy in February. Santander cut it to Underperform in January. Deutsche Bank and Goldman Sachs both carry active Buy ratings on the name.

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