UBS analysts have reinstated ASML as their top pick in the European semiconductor sector [1].
The upgrade signals a growing confidence in the Dutch company's role as a primary supplier for the hardware necessary to power artificial intelligence [4].
Analysts at UBS, led by Francois‑Xavier Bouvignies, raised the price target for ASML from €1,600 to €1,900 [1]. The firm also lifted its earnings estimates for 2027 and 2028, placing them above the current market consensus [1].
This shift in valuation follows the release of ASML’s first-quarter results on April 15, 2026 [2]. The financial data provided the basis for the analysts to re-evaluate the company's growth trajectory in the European market [2].
According to the analysts, the primary driver for the upgrade is the rising demand for artificial-intelligence chips [4]. ASML, which is headquartered in the Netherlands, produces the lithography systems required to manufacture these advanced semiconductors [1].
While the broader semiconductor market continues to fluctuate, UBS said ASML represents the strongest bet among European chip stocks [1]. The firm's updated projections suggest a sustained increase in profitability as AI integration accelerates across global industries [1].
“UBS reinstated ASML as its top pick in the European semiconductor sector”
The upgrade reflects a broader industry trend where the value of semiconductor companies is increasingly tied to their ability to support AI infrastructure. By raising the price target and earnings estimates for 2027-2028, UBS is signaling that the growth phase of AI hardware deployment is expected to last several years, positioning ASML as a critical bottleneck, and beneficiary, of the global chip supply chain.
