Key insights
- Bank of America reiterates a bullish outlook on ASML, anticipating a strong memory cycle through 1H27 and increased EUV adoption. They foresee upside in memory CAPEX, driven by high-NA EUV adoption in 2028 and potential for ASML to increase EUV capacity in 2026. BofA suggests ASML's 2028 revenue estimate is conservative and anticipates a capital markets day later this year. This positive outlook on a key semiconductor equipment supplier suggests continued strength
Investing.com -- Bank of America remains upbeat on ASML after meetings with investors across Asia, with analyst Didier Scemama stating in a note that the “key message” is that the memory cycle “is likely to remain strong through at least 1H27E.”
According to BofA, this strength points to “upside potential in memory CAPEX,” supporting its view that ASML will be the “prime beneficiary” as EUV adoption broadens and layer counts increase.
BofA cites three major catalysts. First, the firm expects high-NA EUV adoption in 2028, driven by TSMC and SK Hynix, following confirmation that tool availability reached 80% at the end of 2025 and should reach 90% by the end of 2026. Scemama models 15 high-NA tool deliveries in 2028.
Second, BofA says low-NA EUV capacity is “likely to be reached by 4Q27E,” with 22 tool deliveries that year, suggesting ASML could signal an EUV capacity increase in 2026.
The firm argues its €52 billion revenue estimate for 2028 is “increasingly conservative” compared with the consensus.
Third, BofA expects ASML to hold a capital markets day later this year and sees room for the company to raise its 2030 revenue guide to a range of €53.7 billion to €65.4 billion.
While noting investor scepticism around hybrid bonding adoption, BofA maintains that uptake will be gradual but real, supported by expected use in high-end smartphones and next-generation HBM technologies.
“We maintain our Buy rating/top pick on ASML,” Scemama writes, with an unchanged price target of €1,598.