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Investing.com -- Mizuho upgraded ASML to Buy in a note Monday, citing stronger-than-expected demand for EUV from key chipmakers and raising its price objective to €930 from €650.
The analysts said they forecast ASML’s earnings per share to grow “6% YoY in 2026 and 21% YoY in 2027,” supported by robust wafer fab equipment (WFE) spending.
Growth drivers include “strong WFE spending from TSMC, rising DRAM WFE spending, stabilized WFE spending from Intel, and decent China WFE spending outlook,” according to Mizuho.
Samsung is expected to provide a major boost. Mizuho wrote that it foresees “EUV demand increase from Samsung in 2026 due to technology migration and capacity expansion for 1c DRAM and N2 logic, [and] equipment move-in for U.S. Taylor fab with monthly capacity plan of 7k in 2026 and 15k in 2027-28.”
Intel is also projected to be a key source of demand. “Intel’s capex is likely to be stabilized in 2026 with stable EUV demand into 2026-27,” Mizuho said, highlighting that the company’s “18A capacity expansion for internal CPU products should persist into 2026, and we expect EUV installation for 14A R&D capacity from 2H26.”
The analysts also noted Intel’s “potential 14A foundry business with Apple and Nvidia.”
China remains an important market, with Mizuho forecasting its WFE sector to grow 13% year-on-year in 2026, supported by “more aggressive capacity expansion plan for DRAM and advanced nodes in logic along with AI localization trend.”
ASML’s China business alone is expected to rise 4% in 2026.
Mizuho now values ASML at 30x estimated 2027 earnings, compared with its prior 25x multiple, saying EUV demand trends justify the higher valuation.