ASML Holding shares climbed to nearly €1,500 in Amsterdam on Thursday, extending a rally fueled by artificial intelligence demand. The stock hit an intraday high of €1,499.00 before settling at €1,498.00, up from the prior close of €1,485.20. In U.S. trading, ASML's American depositary receipts rose 2.3% to $1,766.81 late in the Nasdaq session.
The move came after two major brokerages raised their price targets on the Dutch semiconductor equipment maker. Bank of America lifted its target to €1,921 from €1,710, maintaining a buy rating, while Barclays increased its target to €1,900 from €1,575, keeping an overweight call. Both firms cited improved visibility into demand for ASML's extreme ultraviolet lithography (EUV) machines, which are critical for producing advanced chips used in AI applications.
Analysts noted that customers are providing ASML with unusually detailed forecasts as their own demand projections continue to rise. Capital spending from major cloud providers is picking up, and long-term deals are increasing across graphics processors, central processing units, custom AI chips, and memory devices. This visibility supports ASML's ability to expand EUV output beyond current bottlenecks.
Adding to the positive sentiment, Taiwan Semiconductor Manufacturing Co (TSMC), one of ASML's key customers, confirmed that AI demand remains strong. TSMC CEO C.C. Wei stated on Thursday that customer demand is robust and the company is taking steps to avoid slowing the AI supply chain. Wei also revealed that TSMC has acquired ASML's next-generation High-NA EUV machines, though they are not yet in production due to high costs. "Once the economics make sense, we will bring it into production," Wei said.
Despite the upbeat outlook for ASML, the broader market showed mixed signals. Global stocks traded unevenly, with tech stocks under pressure after Broadcom dropped over 14% following disappointing results. The decline reflected investor concerns about lower-than-expected demand for custom AI chips. "Today's action in tech specifically is emblematic of how fragile sentiment can be," said James St. Aubin, chief investment officer at Ocean Park Asset Management.
In Europe, the STOXX 600 index closed up 0.5%, but chipmakers lagged. Infineon and STMicroelectronics fell after Broadcom's results, though ASML bucked the trend. The sector has not moved in lockstep with the AI narrative, highlighting the uneven impact of AI-driven demand.
ASML itself lifted its full-year forecast in April, projecting 2026 sales between €36 billion and €40 billion. The company reported first-quarter revenue of €8.8 billion and a gross margin of 53.0%. "Demand for chips is outpacing supply," CEO Christophe Fouquet said at the time. ASML remains the sole producer of EUV lithography machines, a near-monopoly that underpins its pricing power and growth prospects.
However, risks persist. Both BofA and Barclays flagged potential headwinds from China export restrictions and weaker chip spending. ASML's 2026 outlook already incorporates a range of export control scenarios. The stock's high valuation—trading near record levels—leaves little room for error. If AI-driven spending from TSMC, Nvidia-related firms, and memory producers falters, ASML could face a sharp correction.
