According to Morgan Stanley, ASML is rising amid the ongoing artificial intelligence boom, driving growth in semiconductor equipment inventory. The investment company upgraded ASML from equal weight to overweight. “We expect the revenue debate to shift from 2025-26 to forecasts for 2026-27, and we will see some growth drivers during this period,” analyst Lee Simpson said in a memo. ASML YTD Mountain ASML By ASML 2019, Simpson pointed to the recent expansion of AI chip foundries and the rise in semiconductor chip manufacturing in China as a potential growth driver. He added that improving memory chip spending in the second half of 2026 and 2027 would also be a major tailwind for stocks. “Samsung’s massive Tesla casting order, NVDIA’s $5 billion investment in Intel and optimistic forecasts from the Japanese government-funded foundry (Rapidus) are reinvoking hope for a broader, more competitive set of logic spending,” Simpson said. The market is not priced with ASML cost management measures and shifts in gross profits, Simpson added. “We can see some…the headwinds could turn around and positive momentum could come back,” Simpson said. Morgan Stanley’s call coincides with most sellside shops. According to LSEG data, 10 analysts covering ASML, or two-thirds covering ASML, have assigned stocks or strong purchase ratings. ASML shares rose more than 3% in pre-market trading on Monday. Stock prices have so far increased by around 33% per year.
