Bernstein initiates ASML at 'Market Perform' with concerns about EUV capex

From Yahoo Finance: 2025-06-25 12:50:00

ASML Holding N.V. (NASDAQ:ASML) is considered one of the 10 best AI stocks to buy by billionaire David Tepper. On June 17, Bernstein initiated coverage of ASML’s shares, rating them as “Market Perform” with a price target of €700.00 ($806), indicating nearly 6% upside.

Analysts at Bernstein express concerns about ASML’s EUV lithography business, noting it consumes a significant portion of capex with diminishing returns. However, they anticipate a decline in EUV capex intensity at the 3 nm logic node and D1d DRAM node.

Despite concerns, Bernstein acknowledges ASML’s dominance in EUV lithography, highlighting the company’s near-monopoly in the technology. ASML also boasts solid fundamentals with a 52% gross profit margin and 17.7% revenue growth in the last twelve months.

ASML Holding N.V. (NASDAQ:ASML) is a Dutch semiconductor equipment company specializing in advanced photolithography machines for microchip production, particularly in extreme ultraviolet (EUV) and deep ultraviolet (DUV) systems.

While ASML shows potential as an investment, some AI stocks may offer greater upside potential with lower downside risk. For insights on an undervalued AI stock poised to benefit from current trends, refer to the free report on the best short-term AI stock.



Read more at Yahoo Finance: Bernstein Initiates ASML at ‘Market Perform’ Amid EUV Capex Concerns