ASML Holding has more than doubled over the past 12 months, and Bernstein’s analysts think the party isn’t over. The firm maintains a bullish outlook on the Dutch semiconductor equipment maker, citing AI-driven demand as the engine behind what they believe is a rally built on earnings, not hype.
Analyst David Dai has identified ASML as a top pick among European semiconductor stocks, a distinction that carries weight given the company’s already eye-popping run.
The EUV monopoly advantage
The company holds a near-monopoly in extreme ultraviolet lithography, the technology required to manufacture chips at process nodes below 7nm. If you want to build the most advanced semiconductors on the planet, you need ASML’s machines. There is no viable alternative.
That means every major foundry chasing AI compute capacity, whether it’s TSMC, Intel, or Samsung, is writing checks to the same company. When the entire industry simultaneously decides it needs more advanced chip manufacturing capability, ASML doesn’t compete for the business. It simply processes the orders.
