Shares of ASML, a leader in lithography machines crucial for producing advanced AI chips, are projected to exceed $1,500 in the coming year, according to several analysts. The company has seen its stock price soar approximately 80% over the past year, driven by escalating demand for AI technology and significant expansions in semiconductor manufacturing capabilities.
As the semiconductor industry continues to rebound, the iShares Semiconductor ETF (NASDAQ: SOXX) has gained over 9% since the beginning of 2026. This surge reflects the robust demand for AI-driven applications and the corresponding need for increased production capacity among semiconductor manufacturers. The current environment has led to a resurgence of interest in semiconductor stocks that had previously faced volatility.
ASML’s Dominance in the Market
ASML holds a near-monopoly in the production of extreme ultraviolet (EUV) lithography machines, which are essential for creating the most advanced chips. The increasing necessity for these chips, particularly in AI applications, has resulted in a backlog of orders for ASML’s machinery. Despite its stock already experiencing significant gains, analysts remain optimistic about its future performance, citing an anticipated uptick in demand from foundries looking to expand their manufacturing capabilities.
The company’s shares are currently trading at 44.6 times forward price-to-earnings (P/E), positioning them at a premium relative to the broader market. However, many experts believe that the ongoing AI boom may justify these valuations. With a notable 17% of ASML’s gains occurring year to date, the stock appears to be on a steep upward trajectory driven by robust market dynamics.
Market Trends and Future Outlook
The semiconductor sector is experiencing what many analysts describe as a resurgence, fueled by a critical shortage of memory chips and an aggressive push by manufacturers to ramp up production. As data storage firms benefit from this shortage, semiconductor equipment manufacturers like ASML are also poised to gain from increased investments in production infrastructure.
While ASML stock has already seen a significant rise, some analysts suggest that it remains undervalued compared to its peers. Shares are currently up just over 25% from their 2024 peak, suggesting there is still room for growth. As foundries invest heavily to meet the projected demand for dynamic random-access memory (DRAM) in the coming years, ASML is likely to benefit from these trends.
Michael Burry, known for his bearish bets against the semiconductor industry in the past, has shifted his stance, indicating a potential turning point for investors who may have previously underestimated the sector’s resilience. As the semiconductor market experiences another growth spurt, ASML emerges as a compelling investment opportunity.
In summary, ASML’s position as a market leader in lithography technology, coupled with the unprecedented demand for AI chips, positions its stock for potential further gains. As analysts predict a rise above $1,500, investors are encouraged to consider ASML as a key player in the rapidly evolving semiconductor landscape.
