ASML Stock Upgraded: Morgan Stanley Sees Big Upside Ahead

ASML Holding N.V. (NASDAQ:ASML) is one of the AI Stocks in Focus on Wall Street. On September 22, Morgan Stanley upgraded the stock to “Overweight” from Equal Weight with a price target of €950. The firm sees “early signs of improvement” for ASML.

“Since peaking last year (Jul’24), earnings forecasts have been revised significantly downwards for ASML, as is typical in a downcycle, with a marked effect on the share price (down 45% peak to trough).”

The firm said its upgrade is a reflection of positive earnings revisions and cyclical recovery despite market concerns.

“Our upgrade reflects the potential for positive earnings revisions and cyclical recovery – focus to shift to 2026-27 debate. FY27e EPS could approach €33 (8% ahead of consensus) on strength in memory, mix effects and cost controls. We expect order momentum to build before year-end 2025 for delivery in late 2026/27. Despite the recent rally, we think the share price still reflects flat layer count, weak China, and minimal sales from Intel and Samsung. We upgrade ASML to Overweight, with a PT of €950, implying 20% upside.”

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.

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