ASML Holding N.V. (NASDAQ:ASML) is one of the 10 Best AI Stocks to Watch in May. In the past year, the stock grew 115.39% and an equally impressive 23.65% year-to-date. According to CNN ratings compiled from 45 analysts, 82 percent placed a Buy rating on ASML, while 13 percent marked it with a Hold rating. The stock has a median price target of $1,775, a 23.35% upside from the current price of $1,438.99.
On April 15, RBC Capital raised its price target on ASML to €1,700 from €1,625 while maintaining an overperform rating, driven by strong demand for Extreme Ultraviolet (EUV) lithography.
For the first quarter of the year, the company reported total net sales of €8.8 billion and a gross margin of 53.0%, both of which fall within the company’s guidance. Net income came in at €2.8 billion.
ASML President and Chief Executive Officer Christophe Fouquet emphasized the rise in the demand for chips, which is outpacing supply, driven by ongoing AI-related infrastructure investments. He added:
“In response, our customers are accelerating their capacity expansion plans for 2026 and beyond, supported by long-term agreements with their customers. In the past months, our customers have increased their expected short- and medium-term demand for our products. ASML’s order intake continues to be very strong as a result, and we are closely aligned with our customers to support their demand in a combination of delivery of new systems and performance upgrades of their installed base. These business dynamics underpin our expectation that 2026 will be another growth year for all our businesses.”
Foquet said the company expects total net sales for the second quarter of 2026 to be between €8.4 billion and €9.0 billion, with a gross margin between 51% and 52%. He added:
“We expect R&D costs of around €1.2 billion and SG&A costs of around €0.3 billion. Given the demand dynamics discussed above, we now expect total net sales for 2026 to be between €36 billion and €40 billion, with a gross margin between 51% and 53%. We expect that the bandwidth in our 2026 guidance accommodates potential outcomes of ongoing discussions around export controls.”
ASML is a leading supplier to the semiconductor industry. The company provides chipmakers with hardware, software, and services to mass-produce integrated circuit patterns. It is a multinational company headquartered in Veldhoven, the Netherlands, with offices across EMEA, the US, and Asia.
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