Stock Markets March 23, 2026

BofA Keeps Buy Rating on ASML After Asian Investor Meetings, Sees Extended Memory Strength

Bank of America highlights sustained memory demand, EUV capacity ramp and potential revenue upside for ASML

By Sofia Navarro ASML
BofA Keeps Buy Rating on ASML After Asian Investor Meetings, Sees Extended Memory Strength
ASML

Bank of America reaffirmed its bullish stance on ASML after a series of investor meetings across Asia. The firm says the memory cycle should stay robust through at least the first half of 2027, underpinning upside to memory capital expenditure and positioning ASML as a leading beneficiary as extreme ultraviolet (EUV) adoption broadens and layer counts rise. BofA identifies three key catalysts tied to EUV tool availability, capacity timing and potential guidance upgrades, while keeping an unchanged Buy rating and a price target of 1,598.

Key Points

  • BofA says the memory cycle is likely to remain strong through at least 1H27E, supporting potential upside in memory CAPEX and demand for ASML equipment.
  • Three catalysts highlighted by BofA: high-NA EUV adoption in 2028 with an estimated 15 high-NA tool deliveries; low-NA EUV capacity likely by 4Q27E with 22 tool deliveries; and potential for ASML to raise its 2030 revenue guide following a capital markets day.
  • Sectors impacted include semiconductors, memory manufacturing, and smartphone components, as high-end handsets and next-generation HBM are cited as early adopters of hybrid bonding.

Bank of America remains constructive on ASML following a round of discussions with investors across Asia, according to analyst Didier Scemama. In a research note summarizing the meetings, Scemama said the central takeaway was that the memory cycle "is likely to remain strong through at least 1H27E."

That sustained demand for memory investment supports the banks view that ASML stands to gain as EUV usage expands and semiconductor layer counts increase. BofA points to three principal catalysts that could underpin further upside for ASML.

High-NA EUV adoption in 2028 - BofA expects high-numerical-aperture (high-NA) EUV deployment in 2028 to be driven by TSMC and SK Hynix. The firm cites confirmation that tool availability reached 80% at the end of 2025 and should reach 90% by the end of 2026. In its modeling, Scemama forecasts 15 high-NA tool deliveries in 2028.

Low-NA EUV capacity timing - The bank judges that low-NA EUV capacity is likely to be achieved by 4Q27E, which in BofA's view corresponds with 22 tool deliveries that year. That cadence suggests ASML could announce an increase in EUV capacity in 2026.

Revenue guidance and capital markets day - BofA calls its own 52 billion revenue estimate for 2028 "increasingly conservative" versus consensus. The firm also expects ASML to host a capital markets day later in the year and believes there is scope for the company to lift its 2030 revenue target into a range of 53.7 billion to 65.4 billion.

Scemama notes investor skepticism about hybrid bonding adoption but states BofA's view that uptake will be gradual and real, with expected early uses in high-end smartphones and in next-generation high-bandwidth memory (HBM) technologies.

On the basis of these factors, BofA retains a Buy rating and keeps ASML as a top pick, leaving the price target unchanged at 1,598.


For investors evaluating stocks with AI-driven strategies, the note also referenced ProPicks AI, which evaluates companies monthly across more than 100 financial metrics. The commentary described the tool as scanning fundamentals, momentum and valuation to identify opportunities, and cited past winners including Super Micro Computer (+185%) and AppLovin (+157%).

Risks

  • Investor skepticism about the pace of hybrid bonding adoption presents uncertainty for ASML demand tied to that technology - this affects the semiconductor equipment and memory sectors.
  • Timing assumptions for EUV tool availability and deliveries (80% availability end-2025, 90% end-2026, and modeled deliveries) drive BofAs outlook; any deviation in tool availability or deliveries could affect ASMLs upside potential - impacting capital equipment markets.
  • The expected capacity and guidance changes depend on ASML execution and market uptake; if ASML does not or cannot increase EUV capacity as anticipated, revenue and market expectations could be pressured - relevant to capital markets and supplier ecosystems.

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