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 Investors. On 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.

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