Key insights
- Goldman Sachs has raised price targets for key European chipmakers like ASML, ASM International, and BE Semiconductor Industries, citing positive industry datapoints. This includes robust demand for AI infrastructure, strong memory investment cycles driven by HBM, and resilient China wafer fabrication equipment spending. The revisions reflect a more constructive outlook for semiconductor equipment and AI-related hardware, suggesting potential upside for related equities.
Investing.com -- Goldman Sachs on Tuesday raised its 12-month price targets for ASML, ASM International, BE Semiconductor Industries and Nebius, citing a string of recent industry developments that point to a stronger demand backdrop for semiconductor equipment and AI infrastructure.
The bank lifted its price target on ASML to €1,770 from €1,600, on ASMI to €955 from €895, on BESI to €315 from €286, and on Nebius to $267 from $234. All four stocks are rated buy at Goldman.
The revisions reflect a more constructive view on several fronts. In memory, SK Hynix announced plans to double wafer capacity over the next five years. The move “reinforces confidence in a multi-year memory investment cycle, particularly as HBM demand remains robust and customers continue to prepare for higher AI-related memory requirements,” analysts led by Alexander Duval said.
Meanwhile, recent commentary from Lam Research and KLA suggested China wafer fabrication equipment (WFE) spending would remain broadly flat to slightly higher in 2026, highlighting a more resilient outcome than the market had previously anticipated.
In AI infrastructure, Broadcom reiterated expectations of more than $100 billion in AI semiconductor revenue in fiscal 2027 across 10 gigawatts of data centre capacity additions, with further growth expected in fiscal 2028.
Nvidia, meanwhile, said its sovereign AI revenue grew more than 80% year-on-year in the first quarter of fiscal 2027, and flagged that H100 and A100 GPU pricing was up 20% and 15% year-to-date respectively, underscoring that demand continues to outpace supply.
For ASML, Goldman raised its fiscal 2027–2030 revenue estimates by around 1–2%, driven by a more positive outlook for deep ultraviolet (DUV) immersion tools given resilient China demand from local players across both logic and memory.
The bank also lifted outer-year estimates for ASMI and BESI by roughly 2% and 3%, respectively, reflecting stronger expected demand from AI-driven logic applications and, in BESI’s case, improved prospects for its mainstream die attach and hybrid bonding businesses.
Nebius saw the most significant estimate changes. Goldman trimmed its fiscal 2026 revenue forecast by around 2% to account for the pace of capacity ramp, but raised fiscal 2027–2030 projections by 2–9%, citing "strong demand, robust capacity expansion and favourable pricing dynamics."
Nebius this week announced plans to invest roughly £1.7 billion to deploy three new Nvidia-powered facilities in the U.K., with combined capacity expected to reach 65 megawatts by 2027.
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