ASML's recent earnings report for the second quarter of 2026 has set the stage for ambitious price forecasts from analysts, with Bernstein leading the charge. The firm has elevated its price target to €2,500, the highest in the market, following what they described as a "triple happiness" quarter. This positive outcome stemmed from higher revenues, enhanced capacity, and margins that surpassed expectations.

Bernstein's analyst David Dai cited three main factors driving this optimistic outlook. Firstly, ASML plans to boost Low NA EUV and ArFi capacity by an impressive 30% annually through 2027 and 2028. Their deep ultraviolet (DUV) machines are also anticipated to reach 220 units by 2028, exceeding previous projections. Secondly, there's substantial pricing potential. The average selling price of EUV systems is expected to jump by 10% in 2027, backed by management's remarks on a 45% increase in Low NA EUV throughput year-on-year and a 30% rise in capacity. A further increase in pricing is also expected in 2028.

Analysts Respond to ASML's Guidance

ASML revised its full-year guidance for 2026 net sales significantly upward, projecting between €43 billion and €45 billion, compared to earlier estimates of €36 billion to €40 billion. This new figure notably exceeds the consensus estimation of €39.3 billion. Additionally, Barclays analyst Simon Coles has also revised his price target for ASML to €2,400, citing the solid margins as a core positive in this quarter, which were bolstered by a resurgence of DUV demand in China and better pricing dynamics for EUV machines.

Looking Ahead: Continued Demand and Growth

Wedbush Securities' analyst Matt Bryson has highlighted the significance of ASML's raised guidance for 2027, suggesting it aligns with the solid demand for advanced logic and DRAM components driven by artificial intelligence developments. Bryson believes that increased spending is on the horizon, fueling higher output in late 2027 and into early 2028, particularly in the memory sector. However, it's important to note the uncertainty regarding when supply will sufficiently meet demand in this fast-evolving market.

This content is for informational purposes only and does not constitute financial advice.