RBC Sees Multiple Secular and Cyclical Drivers Supporting ASML Upside

ASML Holding N.V. (NASDAQ:ASML) is one of the AI Stocks Making Waves on Wall Street. On January 14, RBC Capital analyst Srini Pajjuri initiated coverage on the stock with an Outperform rating and a price target of $1,550. The analyst sees multiple secular and cyclical growth drivers across ASML’s memory and logic businesses.

According to the firm, ASML outperformed the SOX index in 2025 due to improving wafer fab equipment spending and secular extreme ultraviolet (EUV) lithography growth. These stronger WFE and EUV trends are likely to sustain in 2026/2027, particularly fueled by robust GenAI demand.

An extremely tight DRAM supply, increasing EUV intensity, and Samsung’s potential rebound in HBM4 are also “meaningful catalysts.”

Discussing the logic segment, analysts noted that GenAI accelerators are adopting more advanced nodes and foundry competition is re-emerging. China-related risks are largely priced in, and ASML’s services business is likely to continue growing at a double-digit pace.

“Valuation premium over US peers has compressed, which we think makes risk/reward attractive. Initiate at Outperform.”

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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Disclosure: None.