ASML back in the spotlight: banks increase price targets

After a period of silence, chip machine manufacturer ASML is back at the top. Investor interest is increasing rapidly, and analysts are significantly raising their expectations.

AI investments are driving the chip sector

In recent weeks, the share of the Veldhoven company has received a strong boost. Since the beginning of September, the price has risen by about 36 percent, from about 640 euros to 874.30 euros. Several major banks have now increased their price targets. Citi is aiming for more than 1,050 euros, JPMorgan at 1,000 euros, and Deutsche Bank recently set the target at 900 euros. ASML has now almost reached the latter level.

According to analysts, the renewed interest is no coincidence. In the world of artificial intelligence, investments worth billions are coming in rapid succession. For example, OpenAI recently concluded a major deal with chip manufacturers AMD and Nvidia, while Nvidia itself entered into a partnership with Intel.

ASML, as a manufacturer of advanced chip machines, is expected to benefit indirectly from the growing demand for AI chips. As companies like Nvidia and AMD ramp up production, so does the need for ASML’s lithography machines needed to make those chips. These so-called lithography machines use light to make very small patterns on a chip, an important step in building computer chips.

Preview of new quarterly figures

Not only ASML, but also other Dutch chip companies are benefiting from the optimism. ASM International also received a higher rating from Citi and has seen its shares rise by about 40 percent since early September. Besi even jumped 13 percent after the deal between AMD and OpenAI. Over the past six months, the company’s share has already increased in value by more than 75 percent.

However, there remains some caution at ASML itself. The company will present its quarterly figures next week. During the previous figures presentation, CEO Christopher Fouquet tempered expectations for 2026. He then pointed to the weak performance of the automotive industry, an important sales market for chips.

Whether ASML can live up to the high expectations remains to be seen in the near future. After months of doubt, confidence in the Dutch tech icon seems to have fully returned.