ASML
New day, new ASML fan club member
Freedom Broker upgraded ASML to buy from hold and cranked its price target to $1,650 from $950 after the company posted a stronger-than-expected first quarter and lifted its 2026 revenue outlook. That’s a pretty loud vote of confidence for a stock that’s basically the Switzerland of the AI chip boom: neutral-looking on the outside, but everybody needs it.
Why the broker got more bullish
The firm pointed to a few things that make the story feel less like hype and more like a real demand engine:
- Q1 revenue came in at €8.77 billion, topping consensus
- Gross margin hit 53%, right at the top of guidance
- EPS landed at €7.15, also above estimates
- Full-year 2026 revenue guidance moved up to €36 billion-€40 billion from €34 billion-€39 billion
That’s the kind of backdrop that gives analysts permission to stop squinting and start raising numbers.
The catch? The quarter wasn’t perfect
ASML’s second-quarter revenue guide of €8.4 billion-€9 billion came in below the street’s €9.08 billion expectation, so this isn’t a “buy anything with a semiconductor logo” situation. But the bigger-picture takeaway is that demand visibility still looks solid, helped by multi-year orders and more installed-base revenue.
Why you should care
When a company like ASML gets a higher target after already delivering a strong quarter, it can reinforce the “this AI buildout still has legs” trade. In plain English: if the chip makers are the engine, ASML is the very expensive wrench set everyone needs to keep the machine running.
Big picture: this is less about one broker’s opinion and more about the market’s favorite question right now — can AI spending stay this hot? ASML’s answer, at least for now, is basically: probably yes.