10 AI Stocks on the Market’s Radar

5. ASML Holding N.V. (NASDAQ:ASML)

Number of Hedge Fund Holders: 82

ASML Holding N.V. (NASDAQ:ASML) is one of th 10 AI Stocks on the Market’s Radar. On November 26, BofA Securities maintained a Buy rating on the stock with a €986.00 price target. The rating affirmation follows the firms meeting with company CEO Christophe Fouquet and IR Marcel Kemp.

One of the firm’s key takeaways from the meeting have been how demand is currently outstripping supply in the DRAM market, with more DRAM orders anticipated in the coming quarters. 2nm logic capacity also continues to build through 2026-2027.

High-NA technology availability is also progressing, albeit some stitching related issues remain. Volume orders will likely begin in late 2026 or early 2027, with revenue recognition to follow in 2028-2029.

As for China, the firm stated that ASML anticipates a significant drop in sales in 2026 despite foundry and memory fabrication plants running at full capacity. However, it sees recovery potential in 2027.

“We met with ASML CEO Christophe Fouquet & Investor Relations lead Marcel Kemp. Our key takeaways are:

1. In DRAM, demand is outstripping supply, with strong orders expected over the next few quarters for 2027 capacity additions. EUV layers are increasing with the DRAM 1c node versus the 1b node. In logic, 2-nanometer capacity additions should continue throughout 2026/2027.

2. High-NA availability is progressing, though some stitching-related issues are not yet fully resolved. We expect volume orders in late 2026/early 2027 for revenue recognition in 2028/2029. Although margins are still expected to be below group level in 2030, we expect them to approach group level by 2032 as volume ramps.

3. Regarding China, although major foundry and memory fabrication plants are running at full capacity, ASML expects significantly lower China sales in 2026 (we model a 14% year-over-year decline). From 2027 onward, we believe both memory and logic manufacturers could build new fabrication shells, potentially leading to a recovery in 2027.”

ASML Holding N.V. (NASDAQ:ASML) develops and sells advanced semiconductor equipment, including lithography, metrology, and inspection systems for chip manufacturing.