ASML Stock Rally Justified by AI-Driven Chip Expansion, Says Bernstein

ASML Holding N.V. (NASDAQ:ASML) is one of the Trending AI Stocks on Wall StreetOn October 9, Bernstein raised the firm’s price target on the stock to $935 from $743 and kept a Market Perform rating on the shares. The firm cited an improved 2026 outlook behind the rating affirmation.

ASML rallied over 50% in the past two months, driven by several positive industry developments. From Samsung restarting its Taylor fab, to TSMC accelerating U.S. capacity buildout, and expectations of an HBM and DRAM upcycle, this rally was well justified.

Bernstein anticipates ASML to guide growth in 2026. An increased EUV (extreme ultraviolet lithography) demand coming from the DRAM sector is quite likely. The firm also has an upbeat outlook regarding DUV (deep ultraviolet) equipment sales to China.

It sees ASML’s China revenue falling 16% in 2026 instead of 23%, anticipating stronger demand due to China’s push for chip production and advanced fab expansion. The leading-edge buildout will likely begin in 2025 and potentially accelerate in 2026.

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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Disclosure: None.