ASML Named ‘Top Semiconductor Pick’ in Europe by Morgan Stanley, Stock Jumps
Shares of Dutch chip equipment supplier ASML ROSE 2.6% in pre-market trading after Morgan Stanley analyst Lee Simpson designated it as the "Top Pick" in European semiconductors. The price target was lifted to €1,000 from €975, suggesting a 16.2% upside potential. Simpson anticipates stronger demand in critical chipmaking segments like memory and logic, marking a turnaround from over a year of geopolitical and spending-related uncertainties.
ASML is capitalizing on the DRAM wave, driven by technological advancements among memory manufacturers. The shift from older 1a and 1b nodes to the more advanced 1c node is expected to increase EUV lithography layers, underscoring sustained demand for ASML's cutting-edge technology. Simpson upgraded the stock from Hold to Buy, citing potential earnings revisions and a cyclical recovery extending into 2026–27.
