ASML Stock Called 'Top Pick' As Memory-Chip Makers Upgrade Gear

A Wall Street analyst on Thursday called ASML (ASML) stock a “top pick” as the semiconductor equipment leader benefits from memory-chip producers buying new gear.

Bernstein analyst David Dai reiterated his outperform rating on ASML stock and raised his price target to 1,971 from 1,911. He also said ASML is his “top pick” in Europe’s semiconductor sector.

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On the stock market today, ASML fell 4.6% to 1,329.50 amid an overall rough session for stocks.

ASML shares have pulled back since hitting a record high of 1,547.22 on Feb. 25.

Netherlands-based ASML is seeing heightened order activity from makers of dynamic random-access memory, or DRAM, chips, Dai said in a client note.

“The DRAM makers are accelerating the pace of capacity expansion due to the widening gap between DRAM supply and demand,” Dai said. DRAM demand has soared amid the buildout of data centers for artificial intelligence.

“With the surge of DRAM demand from generative AI, including both HBM (high bandwidth memory) and DDR (double data rate RAM) for AI servers, the supply and demand gap widened and DRAM prices surged,” he said.

ASML Stock Is On Three IBD Lists

DRAM chipmakers buying new gear include Micron Technology (MU), Samsung and SK Hynix.

“Based on the capacity additions, we forecast ASML to ship 44 EUV (extreme ultraviolet lithography) machines to DRAM (makers) in 2028, representing 45% of ASML’s EUV shipments,” Bernstein’s Dai said. “This is more than double from 18 units in 2025, or 34% of ASML’s EUV shipments then. We raise ASML EUV shipments in 2028 from 79 to 92 units.”

ASML stock is on three IBD lists: IBD 50, Big Cap 20 and Tech Leaders.

Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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