Limited China Risk, Leading-Edge Exposure Could Drive Outperformance
ASML Holding N.V. (NASDAQ:ASML) is a key player in the semiconductor capital equipment space, with a strong position for 2026 and the potential to outpace its peers. New Street Research recently upgraded the stock to a “Buy” rating with a price target of €790, citing ASML’s high leading-edge exposure and the potential for growth beyond the conservative 2% estimates for next year.
The firm believes that ASML stands to benefit from higher growth in leading-edge WFE spending and limited risk of share loss in China, positioning it for growth in the upper end of its peer group. Normal order intake in quarter 3 is expected to alleviate concerns around growth for 2026, with the stock currently trading below historical averages and peers.
ASML develops and sells advanced semiconductor equipment, including lithography, metrology, and inspection systems for chip manufacturing. While the company offers significant investment potential, there are other AI stocks that may offer greater upside potential with lower downside risk.
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Disclosure: None.
