UBS Raises PT on ASML Holding (ASML) Stock

ASML Holding N.V. (NASDAQ:ASML) is one of the Best Long Term Growth Stocks to Buy Now. On October 1, UBS lifted the price objective on the company’s stock to EUR940.00 from EUR750.00, while maintaining a “Buy” rating. The company’s stock has seen a strong run-up over the past few weeks, with investors showing increased appetite for both ASML Holding N.V. (NASDAQ:ASML) and broader technology stocks. Notably, over the past month, the company’s stock rose by ~30%. UBS anticipates a favorable news flow for the company over the upcoming 6-12 months, primarily related to high numerical aperture (high NA) opportunities, which it believes will support further share price appreciation.

ASML Holding N.V. (NASDAQ:ASML)’s Q2 2025 total net sales were €7.7 billion, which came in at the top end of its guidance. The gross margin stood at 53.7%, above guidance, mainly supported by the higher upgrade business and one-offs that resulted in lower costs. Looking at 2026, ASML Holding N.V. (NASDAQ:ASML) believes that the fundamentals of its AI customers are strong. Artisan Partners, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“ASML Holding N.V. (NASDAQ:ASML) is a Dutch manufacturer of advanced semiconductor equipment, with a near-monopoly in the extreme ultraviolet (EUV) lithography market. Every chip on every node on the planet is made with an ASML lithography machine. The world is consuming ever more chips, and the leading edge is moving to more complex architectures, driving capital intensity higher for manufacturing. ASML sells into this increasing demand with machines that allow innovation at the leading edge and ever-increasing efficiency in trailing nodes. EUV lithography systems are the only ones capable of producing advanced chips, with the smallest nanometer values. ASML’s high-NA EUV(high numerical aperture EUV) machine can cost over $400 million per unit and already has a decade-long roadmap with customers. With significant net cash on the balance sheet and a large backlog for arguably the most important machine in the world, we have little doubt ASML will exist on the other side of this trade war. When we took our position in April, ASML’s valuation was the cheapest in years, pricing in a slowdown from a recession and other turbulence.”

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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Disclosure: None. This article is originally published at Insider Monkey.