Why Analysts Say ASML Is the Top Semiconductor Pick Heading Into 2026

ASML Holding N.V. (NASDAQ:ASML) is one of the AI Stocks in Focus This Week. On December 1, Morgan Stanley reiterated an Overweight rating on the stock with a €1,000.00 price target. The firm is optimistic on the stock driven by positive momentum for lithography demand.

Analysts have labeled ASML as its Top Pick in European semiconductors as demand strengthens across memory and logic, and new EUV tool cycles and DRAM transitions signal healthier margins heading into 2026.

DRAM cycle and foundry spending are anticipated to support ASML’s order book and sales through fiscal years 2026 and 2027. A recent Asia trip by the firm has further reinforced its belief regarding a memory supercycle and likely near-term upside for ASML’s orders.

Analysts have also highlighted “unprecedented memory demand” with limited DDR5 inventory visibility and DDR4 tightness. ASML is well-positioned to benefit from continued DRAM demand, including commodity DRAM, strong memory pricing, and DRAM technology transitions to HBM4.

It has also been confirmed that TSMC will add 3nm capacity in Taiwan instead of Japan. This implies increased foundry spending and is likely to translate into more 3600d shipments in fiscal year 2026 and provide near-term EUV sales upside for ASML.

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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