A major investment bank says shares in ASML, a Dutch company that makes equipment for computer chip factories, could jump as much as 70% under the best conditions, as manufacturers spend more money to keep up with artificial intelligence demand.
Morgan Stanley picked ASML Holding NV as one of its favorite stocks. The bank’s analysts became even more confident after Taiwan Semiconductor Manufacturing Co., which buys more from ASML than any other customer, showed that companies aren’t cutting back on AI investments.
The Dutch firm’s stock has climbed 25% since the start of 2026.
“Higher 2027 foundry and memory capex as well as better-than-feared China demand drives our conviction,” analyst Lee Simpson and colleagues wrote Thursday.
Stock Price Projections
If everything goes extremely well, Morgan Stanley thinks ASML stock could reach €2,000. The bank’s main forecast puts the price at €1,400, which ranks as the second-highest prediction among firms tracking the stock on Wall Street, based on Bloomberg records.
The stock went up 1.2% to €1,163 on Friday. Earlier this week, ASML’s total worth crossed $500 billion, making it just the third company from Europe to hit that mark.
Strong earnings from selling specialized machinery to chipmakers form the backbone of Morgan Stanley’s positive view. The bank expects ASML will earn roughly €46 for each share in 2027, nearly twice what it made in 2025.
Factors Influencing the Outlook
TSMC’s better-than-expected business outlook this week renewed excitement about AI spending. At the same time, American and Taiwanese officials signed a trade agreement that will see Taiwanese semiconductor firms put $500 billion more into U.S. operations.
Memory chip prices are also rising, which means memory makers will expand their factories and need more equipment from ASML, Morgan Stanley noted. Sales to Chinese chipmakers have performed better than anticipated, the analysts added.