UBS has become more bullish on ASML than the broader market consensus, arguing that the company has more upside than current share prices reflect. The Swiss bank maintained its buy recommendation and raised its price target from 2,250 euros to 2,350 euros. With ASML trading around 1,494 euros, the new target implies potential upside of more than half.
The analysts cited ASML's pricing power, rising lithography intensity and a growing memory-chip business as reasons for the more positive view. The note suggests the market is underestimating the value that ASML can capture from these trends.
The same source material also highlights a separate AI-energy theme. It says semiconductors, memory chips and data centers have already delivered large investor gains during the AI boom, but power availability is emerging as the next major constraint. New AI data centers, it notes, may require not just megawatts but several gigawatts of capacity, comparable to multiple modern nuclear reactor blocks.
The material describes this as a global race for available power capacity. The material says hyperscalers are securing large volumes of energy through long-term contracts, while grid and generation capacity are struggling to keep pace with expansion. Geopolitical risks around the Iran war and the Strait of Hormuz are described as adding to the pressure.
The material adds that utilities and suppliers could benefit from rising demand, long-term offtake contracts and higher power prices, and promotes a report naming five stocks that could be positioned to benefit from AI-related energy demand, some of which are still under the radar.
