Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Goldman Sachs has reiterated its Buy rating on ASML Holding NV (AS:ASML) (NASDAQ:ASML) with a price target of EUR935.00, citing the company’s position as a "clear beneficiary of improved leading-edge Logic/Memory demand from AI."
The firm noted positive inflection in four out of six categories in its Europe Semicap tracker, while its U.S. semiconductor team has revised growth expectations upward for wafer fab equipment (WFE) in 2025/2026 due to more constructive spending outlooks for Memory and leading-edge Foundry segments.
Goldman Sachs views ASML’s current expectations for 2026 as achievable within the improved spending environment, pointing out that an order cadence of only €2 billion per quarter in coming quarters would be sufficient to reach consensus estimates for systems revenue.
While visibility remains limited around recovery in mature node demand, the firm highlighted that inventories in this segment have bottomed out, suggesting potential stabilization.
Despite ASML shares rallying approximately 30% over the past month, Goldman Sachs sees "room for further upside" and potential for valuation re-rating, driven by WFE share gains into 2027/2028 as extreme ultraviolet (EUV) lithography layers resume growth amid an improving customer landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.