ASML Holding N.V. (NASDAQ:ASML) was downgraded by New Street to “Neutral” from Buy with a EUR 790 price target. Concerns were raised about ASML’s growth prospects beyond 2026, despite strong near-term AI-driven demand in semiconductor capital equipment stocks.

New Street anticipates a peak in AI spending this year and next, leading to a weak outlook beyond 2026. The firm believes there is limited upside to 2026 forecasts and valuations are above historic averages, creating a risky setup for ASML stock.

ASML Holding N.V. (NASDAQ:ASML) develops and sells advanced semiconductor equipment, including lithography systems. New Street has downgraded the stock and maintains a cautious view on the sector, recommending other AI stocks with greater upside potential and less downside risk.

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Read more at Yahoo Finance: ASML (ASML) Downgraded to Neutral as Analyst Sees Peak AI Spending by 2026