ASML Stock Still a Buy Despite Tariff and Booking Headwinds

ASML Holding N.V. (NASDAQ:ASML) is one of the AI Stocks Analysts Are Backing Right Now. On September 2, BofA Securities analyst Didier Scemama lowered the price target on the stock to EUR724.00 (from EUR755.00) while maintaining a Buy rating.

The firm believes that macroeconomic and tariff-related uncertainties could weigh on ASML’s near-term bookings.

“We lower our Q3/Q4 booking estimates to €3.5bn/€3.8bn from €4.6bn/€5.4bn on macro and geopolitical uncertainties. We think the lack of details around semiconductor tariffs as well as a weakening China WFE are delaying ordering decisions.”

The firm did note how customer wins at Samsung and Intel’s recent equity funding are encouraging, but said “the challenges facing these customers remain daunting.”

It also noted that strong AI capital expenditure has yet to fully translate into wafer fab equipment (WFE) orders.

“Ongoing strength in AI CAPEX has yet to translate into WFE orders given re-use of capacity for AI logic chips and uncertainty on HBM allocation. The stock trades on 20x/17.5x CY26/27E EV/EBITDA, below historical 26x median EV/EBITDA multiple, justifying our Buy rating. We lower our PO from €755 to €724 as we roll forward our PO from CY26E to CY27E on 20x EV/EBITDA, down from 23x CY26E prior (within historical range of 17x-38x). Reiterate Buy on attractive valuations and resilient lithography intensity.”

ASML Holding N.V. (NASDAQ:ASML) develops and sells advanced semiconductor equipment, including lithography, metrology, and inspection systems for chip manufacturing.

While we acknowledge the potential of ASML as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT:10 AI Stocks Investors Should Keep on Their Radar and 10 Must-Watch AI Stocks on Wall Street.

Disclosure: None.