ASML Stock Upgraded: Morgan Stanley Sees Big Upside Ahead

ASML Holding N.V. (NASDAQ:ASML) is one of the AI Stocks in Focus on Wall Street. On September 22, Morgan Stanley upgraded the stock to “Overweight” from Equal Weight with a price target of €950. The firm sees “early signs of improvement” for ASML.

“Since peaking last year (Jul’24), earnings forecasts have been revised significantly downwards for ASML, as is typical in a downcycle, with a marked effect on the share price (down 45% peak to trough).”

The firm said its upgrade is a reflection of positive earnings revisions and cyclical recovery despite market concerns.

“Our upgrade reflects the potential for positive earnings revisions and cyclical recovery – focus to shift to 2026-27 debate. FY27e EPS could approach €33 (8% ahead of consensus) on strength in memory, mix effects and cost controls. We expect order momentum to build before year-end 2025 for delivery in late 2026/27. Despite the recent rally, we think the share price still reflects flat layer count, weak China, and minimal sales from Intel and Samsung. We upgrade ASML to Overweight, with a PT of €950, implying 20% upside.”

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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