ASML stock price target raised to EUR900 by Deutsche Bank on memory capex

Investing.com - Deutsche Bank has raised its price target on ASML Holding NV (AS:ASML) (NASDAQ:ASML) to EUR900.00 from EUR700.00 while maintaining a Buy rating. The semiconductor equipment giant, currently trading at $962.61 with a market capitalization of $375 billion, has shown remarkable momentum with a 40% gain year-to-date.

The price target increase comes as ASML shares have risen 29% since the beginning of September, primarily driven by improving sentiment around memory capital expenditure extending into 2026. According to InvestingPro data, the stock is trading near its 52-week high of $977.48, with strong revenue growth of 26% in the last twelve months.

Deutsche Bank noted that recent developments regarding Intel have been "just as important, if not more so to the long-term bull case around ASML and geopolitics," following what it described as "a long period of radio silence."

The firm highlighted several significant financial developments for Intel, including a $2 billion capital injection, a $9 billion investment of CHIPS funds from the U.S. government, and a $5 billion investment from Nvidia.

According to Deutsche Bank, "Intel’s balance sheet worries look over for the next 24 months, as it secures external funding and doubles down on 14A development."

In other recent news, ASML Holding NV has caught the attention of multiple analyst firms with several upgrades and a strategic investment. Mizuho upgraded ASML’s stock rating to Outperform, citing a strong demand outlook for extreme ultraviolet (EUV) technology and projecting significant earnings growth in the coming years. Similarly, Morgan Stanley upgraded ASML to Overweight, emphasizing its potential for positive earnings revisions and a cyclical recovery, with a focus on the company’s 2026-2027 outlook. UBS has also reiterated its Buy rating on ASML, maintaining a price target of €750, despite acknowledging short-term challenges.

In addition to analyst upgrades, ASML announced a strategic partnership with Mistral AI, leading a €1.3 billion investment in the AI company. This collaboration aims to explore AI applications across ASML’s product portfolio, enhancing research, development, and operations. UBS further highlighted ASML’s potential as a "quality compounder," anticipating a 20% earnings per share compound annual growth rate from 2026 to 2030. These developments reflect a growing confidence in ASML’s long-term prospects, despite some near-term market uncertainties.

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