Morgan Stanley predicts that ASML could double its earnings by 2027 due to increased capex by semiconductor manufacturers. ASML stock has surged 75% in the past year, outperforming the PHLX Semiconductor Sector index. The company’s extreme ultraviolet lithography machines are in high demand for AI applications. Morgan Stanley believes ASML’s stock rally will continue as chip demand grows. ASML’s equipment orders could rise by 70% as semiconductor manufacturers boost production capacity. Taiwan Semiconductor Manufacturing and Micron Technology are increasing capex, driving demand for ASML’s machines. Morgan Stanley estimates ASML’s earnings could reach $53.85 per share by 2027, potentially leading to an 81% stock price increase. The investment bank is confident in ASML’s future growth prospects.

Read more at Nasdaq: Prediction: ASML Stock Could Surge 70%, According to a Wall Street Analyst