ASML Holding N.V. (NASDAQ:ASML) is one of the 10 AI Stocks Making Waves on Wall Street. On January 29, Bernstein SocGen Group analyst David Dai raised the price target on the stock to $1,911.00 (from $1,642.00) while maintaining an “Outperform” rating. The firm believes market irrationality serves as an attractive entry point amid a robust long-term outlook.
Even though ASML reported strong results, the stock declined 2% at the close, creating what the firm called a “buying opportunity” amid market irrationality. The Dutch company reported massive fourth-quarter 2025 net bookings of €13.2 billion, almost twice Street estimates.
Memory drove for 56% of bookings surge and logic making 44%. The company’s backlog increased by €7 billion quarter-over-quarter to €38.8 billion. Looking ahead, ASML provided guided revenue of €34-39 billion, with the high end significantly above the consensus estimate of €35 billion.
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This guidance range depends on customer’s clean room availability, with EUV technology leading growth while DUV remains relatively flat. The firm noted that the second half of 2026 is going to be stronger than the first half, as customer’s ramp internal move rates and complete fab construction.
“2H26 is to be stronger vs. 1H (time needed to ramp internal move rates, the projected customer fab completion timing). Mgmt reaffirmed 2030 targets of €44–60B revenue, GM 56–60%. Margin guidance of 51–53% is a tad soft, due to product mix, partially offset by higher EUV units and installed base management.”
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.
