Bernstein SocGen Group has reaffirmed its positive stance on ASML Holding (ASML), elevating its price target to $1,911.00 and maintaining an "Outperform" rating. The firm interprets the recent 2% stock decline following ASML's robust earnings report as an attractive entry point, given the company's strong long-term prospects.
ASML demonstrated exceptional financial performance in the fourth quarter of 2025, reporting net bookings of €13.2 billion, nearly double the Street's estimates. This remarkable surge was predominantly driven by a 56% contribution from memory and a 44% contribution from logic, significantly expanding the company's backlog by €7 billion quarter-over-quarter to €38.8 billion. Looking ahead, ASML projects impressive revenue guidance ranging from €34 billion to €39 billion, with the upper end comfortably surpassing the consensus estimate of €35 billion, largely attributed to the sustained growth of EUV technology, while DUV sales are expected to stabilize. The company anticipates a stronger second half of 2026 as customers ramp up internal operations and finalize fab constructions.
While ASML presents a compelling investment case, some alternative AI stocks may offer even greater upside potential with reduced risk. These opportunities could be particularly appealing for investors seeking undervalued AI companies poised to benefit from evolving economic landscapes, including tariff adjustments and reshoring trends.
The semiconductor industry continues to be a cornerstone of technological advancement, with companies like ASML at the forefront of innovation. Investing in such enterprises not only offers financial returns but also supports the foundational infrastructure of future technologies, driving progress and prosperity across various sectors.