Bank of America Continues to Rate ASML Stock Positively Following Asia Research

Investing.com - After meeting with Asian investors, Bank of America remains optimistic about ASML. Analyst Didier Scemama stated in the report that “key information” is that the storage chip cycle “may remain strong at least until the first half of 2027.”

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Bank of America said this strong momentum points to “upside potential in storage chip capital expenditures,” supporting its view that as EUV technology adoption expands and layer counts increase, ASML will become a “major beneficiary.”

The bank listed three main catalysts. First, it expects high numerical aperture EUV technology to be adopted by 2028, driven by TSMC and SK Hynix, with tool availability confirmed to reach 80% by the end of 2025 and 90% by the end of 2026. Scemama predicts 15 high numerical aperture devices will be delivered in 2028.

Second, Bank of America said that low numerical aperture EUV capacity “may reach its limit in Q4 2027,” with 22 devices to be delivered that year, indicating that ASML may signal increased EUV capacity in 2026.

The bank believes its forecast of €52 billion in revenue for 2028 is “becoming increasingly conservative” compared to market consensus.

Third, Bank of America expects ASML to hold a Capital Markets Day later this year and believes the company has room to raise its 2030 revenue guidance to a range of €53.7 billion to €65.4 billion.

While noting investor skepticism about the adoption of hybrid bonding technology, the bank maintains that with expected applications in high-end smartphones and next-generation HBM technology, its adoption will be gradual but real.

Scemama wrote, “We maintain our buy rating / top pick for ASML,” with a target price of €1,598 unchanged.

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