Goldman Sachs on Tuesday adjusted its 12-month price targets higher for several European companies tied to semiconductor equipment and AI infrastructure, saying a cluster of recent industry datapoints supports a stronger demand outlook. The bank lifted targets across ASML, ASMI, BESI and Nebius and maintained buy ratings for all four names.
Price-target changes
- ASML: target increased to c1,770 from c1,600
- ASMI: target increased to c955 from c895
- BESI: target increased to c315 from c286
- Nebius: target increased to $267 from $234
Analysts' rationale
Analysts led by Alexander Duval said the revisions reflect a more constructive stance on several fronts that matter for capital equipment demand. In memory, SK Hynix announced plans to double wafer capacity over the next five years. Goldman interprets that move as reinforcing confidence in a multi-year investment cycle in memory, particularly given continued strength in high-bandwidth memory (HBM) demand and customers preparing for higher AI-related memory needs.
Goldman also cited recent commentary from Lam Research and KLA indicating that China wafer fabrication equipment (WFE) spending is expected to remain broadly flat to slightly higher in 2026. The bank viewed that as a more resilient outcome than had been anticipated previously.
On the AI infrastructure side, Broadcom reiterated expectations for more than $100 billion in AI semiconductor revenue in fiscal 2027 tied to roughly 10 gigawatts of data-center capacity additions, with further gains expected in fiscal 2028. Nvidia reported sovereign AI revenue growth exceeding 80% year-on-year in the first quarter of fiscal 2027 and noted that H100 and A100 GPU pricing had risen about 20% and 15% year-to-date, respectively, which Goldman said underscores demand continuing to outstrip supply.
Company-level estimate changes
For ASML, Goldman lifted fiscal 2027-2030 revenue estimates by roughly 1-2%, driven by a brighter outlook for deep ultraviolet (DUV) immersion tools amid resilient China demand from local logic and memory players.
Outer-year estimates for ASMI and BESI were increased by about 2% and 3%, respectively, with Goldman pointing to stronger expected demand from AI-driven logic applications. For BESI specifically, the bank highlighted improved prospects for its mainstream die attach and hybrid bonding businesses.
Nebius experienced the largest across-the-board changes. Goldman trimmed its fiscal 2026 revenue forecast by around 2% to reflect the pace of capacity ramp, while raising fiscal 2027-2030 projections by between 2% and 9%, citing strong demand, robust capacity expansion and favorable pricing dynamics. Nebius this week also announced plans to invest roughly a31.7 billion to build three new Nvidia-powered facilities in the U.K., targeting combined capacity of 65 megawatts by 2027.
Market context and signals
Goldman interpreted the combination of SK Hynix's capacity plans, vendor commentary on China WFE trajectories, Broadcom's AI revenue expectations and Nvidia's reported sovereign AI revenue gains and GPU price moves as converging signals pointing to a healthier demand backdrop for semiconductor equipment and AI infrastructure. The firm incorporated these signals into both near-term and outer-year estimates for the covered companies.
Conclusion
Goldman's revisions reflect a constructive reassessment of demand drivers across memory and AI infrastructure that influenced price targets and revenue assumptions for ASML, ASMI, BESI and Nebius. The bank's changes emphasize the role of memory capacity expansions, potential resilience in China WFE spending, and sustained AI-related hardware demand in shaping equipment suppliers' revenue trajectories.
Note: The article reports analysts' published revisions and company- or industry-level datapoints cited by Goldman Sachs. It does not introduce additional forecasts or ratings beyond those described by the bank.