Morgan Stanley Sees 70% Surge for ASML Shares

Morgan Stanley laid out its bullish case for why investors should buy ASML Holding NV shares, saying that in the most optimistic scenario, the stock has a 70% rally ahead as chipmakers ramp up spending to meet soaring demand for artificial intelligence (AI), Henry Ren reported for Bloomberg News.

Morgan Stanley analysts said they are even more positive after Taiwan Semiconductor Manufacturing Co. (TSMC), ASML’s biggest client, showed that the AI spending boom is not slowing down. (Photo: ASML Facebook)

The Dutch semiconductor equipment maker is one of the bank’s top stock picks.

Morgan Stanley analysts said they are even more positive after Taiwan Semiconductor Manufacturing Co. (TSMC), ASML’s biggest client, showed that the AI spending boom is not slowing down.

ASML shares are up 25% so far in 2026, marking a roaring start to the year.

“Higher 2027 foundry and memory capex, as well as better-than-feared China demand, drives our conviction,” wrote analysts, including Lee Simpso,n in a recently-dated note.

In the bank’s bull case, ASML shares could reach as high as €2,000 if profits exceed their expectations and tech valuations continue to surge.

Their base case is that the stock will hit their price target of €1,400, the second-highest estimate among Wall Street brokers, according to data compiled by Bloomberg. ASML shares advanced 1.2% to €1,163.

Its market value surpassed $500 billion this week, becoming only the third European company to reach that milestone.

Blockbuster profits, driven by intense demand for ASML’s specialized chipmaking equipment, underpin Morgan Stanley’s argument for the stock. They see profits of about €46 per share in 2027, almost doubling from 2025 levels.