Analyst Upgrades Drove the June Surge

Three major banks raised their price targets in June 2026, all well ahead of the upcoming earnings print:

• Bank of America analyst Didier Scemama cited higher EUV unit forecasts and a full order book for calendar 2027, raising 2027 and 2028 EPS estimates by 1% and 5% respectively .
• Wells Fargo analyst Joe Quatrochi pointed to expectations for continued positive semi-cap equipment results in fiscal Q2 .
• JPMorgan suggested that ASML's earnings estimates could see further upward revisions, noting the company's indication of more flexible EUV manufacturing capacity than previously guided .

Additionally, Susquehanna raised its target to EUR 2,350 (roughly $2,500+ USD equivalent) .

Q1 2026 Results: Beat and Raise

ASML reported Q1 2026 results on April 15, 2026 :

• Total net sales: €8.8 billion (gross margin of 53.0%, at the upper end of guidance) .
• Net income: €2.8 billion, with basic EPS of €7.15 (well above consensus estimates) .
• Installed-base revenue: €2.5 billion .
• Raised full-year 2026 revenue guidance: The company lifted its 2026 revenue outlook to €36–40 billion (from a prior range of €35–40 billion), with a gross margin between 51% and 53% .
• Q2 2026 guidance: ASML guided for net sales between €8.4 billion and €9.0 billion with a gross margin of 51–52% .

CEO Christophe Fouquet attributed the raised outlook to sustained AI-driven demand and strong momentum in EUV lithography technology .

Why Analyst Confidence Persists Despite the Average Target Gap

At first glance, the consensus 12-month analyst price target from 44 analysts — approximately $1,740.56 — sits about 9–13% below the current trading price of ~$1,989 . Yet the most influential sell-side analysts have targets well above the stock. Here's why that gap exists:

1. Sole-supplier EUV monopoly is the core thesis. ASML is the world's only supplier of extreme ultraviolet (EUV) lithography machines, which are required to manufacture the most advanced semiconductor nodes (5nm, 3nm, and now 2nm) . No competitor can replicate this technology in the near term, giving ASML extraordinary pricing power and multi-year order backlog visibility .

2. AI-driven chip demand is a structural tailwind. The explosive growth of AI, high-bandwidth memory (HBM), and advanced logic chips is forcing foundries like TSMC, Samsung, and Intel to order more EUV and High-NA EUV systems. BofA specifically highlighted demand for more advanced memory solutions and a full 2027 order book .

3. The consensus target is stale and backward-looking. The average $1,740.56 target includes many older analyst estimates that have not yet been updated to reflect the June 2026 price target increases. The most recent individual targets from BofA ($2,345), Wells Fargo ($2,200), and JPMorgan ($2,200) are all well above the current stock price, indicating top-tier analysts see further significant upside .

4. Valuation appears reasonable relative to growth. Despite a 65%+ YTD rally, some analysts argue ASML trades at its "cheapest relative valuation in a decade" when compared to its earnings growth trajectory and the wider semiconductor equipment sector .

Stock Performance: 2026 Year-to-Date

ASML has been a standout performer in 2026:

• The stock surged roughly 65–80% year-to-date depending on the specific date measured. Barchart reported a 65.46% YTD gain as of June 23 , StockAnalysis reported an ~80% YTD surge by late June , and The Globe and Mail reported a 67.6% YTD gain as of June 26 .
• Over the trailing 12 months, shares are up ~127% .
• The stock hit a fresh 52-week high of $1,959.04 on June 22 as analysts rolled out the higher price targets .

In summary, the stock has run ahead of the lagging consensus average, but the most influential sell-side analysts have raised their targets above the current price, betting that ASML's EUV monopoly and AI-driven order cycle will deliver earnings beats that justify an even higher valuation.

Analyst Upgrades Drove the June Surge

Three major banks raised their price targets in June 2026, all well ahead of the upcoming earnings print:

• Bank of America analyst Didier Scemama cited higher EUV unit forecasts and a full order book for calendar 2027, raising 2027 and 2028 EPS estimates by 1% and 5% respectively .
• Wells Fargo analyst Joe Quatrochi pointed to expectations for continued positive semi-cap equipment results in fiscal Q2 .
• JPMorgan suggested that ASML's earnings estimates could see further upward revisions, noting the company's indication of more flexible EUV manufacturing capacity than previously guided .

Additionally, Susquehanna raised its target to EUR 2,350 (roughly $2,500+ USD equivalent) .

Q1 2026 Results: Beat and Raise

ASML reported Q1 2026 results on April 15, 2026 :

• Total net sales: €8.8 billion (gross margin of 53.0%, at the upper end of guidance) .
• Net income: €2.8 billion, with basic EPS of €7.15 (well above consensus estimates) .
• Installed-base revenue: €2.5 billion .
• Raised full-year 2026 revenue guidance: The company lifted its 2026 revenue outlook to €36–40 billion (from a prior range of €35–40 billion), with a gross margin between 51% and 53% .
• Q2 2026 guidance: ASML guided for net sales between €8.4 billion and €9.0 billion with a gross margin of 51–52% .

CEO Christophe Fouquet attributed the raised outlook to sustained AI-driven demand and strong momentum in EUV lithography technology .

Why Analyst Confidence Persists Despite the Average Target Gap

At first glance, the consensus 12-month analyst price target from 44 analysts — approximately $1,740.56 — sits about 9–13% below the current trading price of ~$1,989 . Yet the most influential sell-side analysts have targets well above the stock. Here's why that gap exists:

1. Sole-supplier EUV monopoly is the core thesis. ASML is the world's only supplier of extreme ultraviolet (EUV) lithography machines, which are required to manufacture the most advanced semiconductor nodes (5nm, 3nm, and now 2nm) . No competitor can replicate this technology in the near term, giving ASML extraordinary pricing power and multi-year order backlog visibility .

2. AI-driven chip demand is a structural tailwind. The explosive growth of AI, high-bandwidth memory (HBM), and advanced logic chips is forcing foundries like TSMC, Samsung, and Intel to order more EUV and High-NA EUV systems. BofA specifically highlighted demand for more advanced memory solutions and a full 2027 order book .

3. The consensus target is stale and backward-looking. The average $1,740.56 target includes many older analyst estimates that have not yet been updated to reflect the June 2026 price target increases. The most recent individual targets from BofA ($2,345), Wells Fargo ($2,200), and JPMorgan ($2,200) are all well above the current stock price, indicating top-tier analysts see further significant upside .

4. Valuation appears reasonable relative to growth. Despite a 65%+ YTD rally, some analysts argue ASML trades at its "cheapest relative valuation in a decade" when compared to its earnings growth trajectory and the wider semiconductor equipment sector .

Stock Performance: 2026 Year-to-Date

ASML has been a standout performer in 2026:

• The stock surged roughly 65–80% year-to-date depending on the specific date measured. Barchart reported a 65.46% YTD gain as of June 23 , StockAnalysis reported an ~80% YTD surge by late June , and The Globe and Mail reported a 67.6% YTD gain as of June 26 .
• Over the trailing 12 months, shares are up ~127% .
• The stock hit a fresh 52-week high of $1,959.04 on June 22 as analysts rolled out the higher price targets .

In summary, the stock has run ahead of the lagging consensus average, but the most influential sell-side analysts have raised their targets above the current price, betting that ASML's EUV monopoly and AI-driven order cycle will deliver earnings beats that justify an even higher valuation.