ASML (ASML) Downgraded to Neutral as Analyst Sees Peak AI Spending by 2026

ASML Holding N.V. (NASDAQ:ASML) is one of the AI Stocks In The Spotlight For InvestorsOn October 6, New Street downgraded the stock to “Neutral” from Buy with a EUR 790 price target. The firm highlighted concerns about ASML’s growth prospects beyond 2026.

The firm warns that growth prospects look weak despite robust near-term AI-driven demand. Robust AI spending outlook in recent months has led to a rally in semiconductor capital equipment stocks, with artificial intelligence capital expenditures likely to triple by 2030. This will require an estimated $130B cumulative wafer fab equipment spending.

However, the firm anticipates “peak acceleration this year and peak spending next year,” leading to a “weak” outlook beyond 2026. “Near-term uncertainty, limited upside to 2026 forecasts, and valuations 2-12 turns above historic averages” creates a “risky setup” for ASML stock.

Therefore, New Street has downgraded the stock and kept a cautious view on the sector.

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

While we acknowledge the risk and potential of ASML as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ASML and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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