ASML shares surge on tech rally and analyst upgrades
Morgan Stanley and Bernstein raise price targets ahead of July 15 earnings release, while peers Siltronic and Soitec also rally.
ASML Holding shares climbed 4.8% on July 9, contributing to a broader rebound in European technology stocks as geopolitical tensions in the Middle East subsided. The rally was underpinned by reports suggesting China may grant domestic artificial intelligence firms limited access to Nvidia's H200 chips, a development that has heightened expectations for demand in semiconductor equipment.
The gain was part of a wider surge in the sector, with the STOXX 600 index rising approximately 0.8% to 640.88 points. ASML’s peers also saw significant movement, with Siltronic jumping 13.4% and Soitec advancing 5.9% on the same day. The stock has now gained around 4% over the past month, driven by anticipation of strong earnings results expected to be released on July 15.
Wall Street sentiment remains bullish, with analysts’ 12-month average price targets implying more than 15% upside from current levels. Morgan Stanley raised its price target on July 7 from EUR 1,600 to EUR 1,830, maintaining a Buy rating. Bernstein had previously raised its target from $1,971 to $2,623 on July 6, also keeping a Buy rating.
ASML is the world’s leading manufacturer of photolithography machines, critical systems used by major chipmakers such as TSMC, Intel, and Samsung to create microchips. The potential easing of restrictions on Nvidia’s H200 chips in China is viewed by market observers as a key driver for equipment makers, as it could accelerate AI infrastructure build-outs.
While the company’s position in the semiconductor supply chain is secure, the immediate market focus is on the upcoming earnings report. Investors are weighing the impact of geopolitical shifts on supply chain dynamics against the company’s fundamental strength in producing high-tech lithography equipment.
