ASML Shares Climb Amid Upgrade on Intensifying EUV Demand

ASML Holding NV (AS:ASML) experienced a more than 3% increase in its stock price on January 2, 2026, after Aletheia Capital raised its rating from “sell” to “buy.” This upgrade, reflecting a growing uptrend, stems from an improved outlook for demand of ASML’s extreme ultraviolet (EUV) lithography systems. With the price target now doubled to $1,500 from $750, the firm signals considerable upside potential versus the stock’s recent closing price of $1,069.86.

Analyst Upgrade Highlights Uptrend in Semiconductor Equipment

Aletheia’s revised stance centers on surging EUV demand, particularly driven by memory chip manufacturers and Taiwan Semiconductor Manufacturing Company (TSMC). The brokerage forecasts TSMC will deploy between 40 and 45 EUV tools in 2027, facilitating a 40-50% increase in its advanced manufacturing capacity. This expanded installation pace is expected to substantially strengthen ASML’s earnings profile in the near term.

Supporting this, Aletheia elevated its earnings projections for fiscal years 2026 and 2027. It now anticipates ASML’s Low-NA EUV revenues to increase by about one-third in 2026, with growth accelerating to 50-60% in 2027. This growth is attributed to higher shipment volumes and a richer mix of products. The overall sales growth forecast was lifted to mid-teens for 2026 and mid-twenties for 2027, surpassing both ASML’s guidance and prevailing analyst consensus.

Financial Performance and Sector Momentum

ASML’s recent financial history reinforces this optimistic outlook. According to InvestingPro data, the company recorded 22.77% revenue growth over the past 12 months, alongside a five-year compound annual growth rate of 19%. Additionally, 10 analysts have recently increased their earnings estimates for ASML, indicating a broadening positive sentiment within the semiconductor equipment industry.

This bullish stance coincides with expanding global investment in cutting-edge semiconductor manufacturing capacity, reflecting accelerating demand for advanced chips. ASML’s improving market prospects thus exemplify a clear uptrend driven by technological innovation and expanding supply chains.

Uptrend: Market Outlook

Aletheia Capital’s upgrade, combined with its doubled price target of $1,500, reinforces a strong uptrend in ASML’s stock underpinned by escalating EUV demand, especially from TSMC’s aggressive capacity expansion plans. Projected revenue and earnings growth for 2026 and 2027 notably outperform existing forecasts, positioning ASML as a key beneficiary of the semiconductor sector’s technological momentum.

Investors focused on semiconductor innovation and equipment suppliers should monitor ASML closely as this uptrend continues to develop over the upcoming fiscal years.