ASML Holding NV (NASDAQ:ASML) is one of the AI stocks are in the spotlight this week. On October 16, Evercore ISI analyst CJ Muse raised his price target on the stock to €1,000.00 (from €755.00), while maintaining an Outperform rating. The rating affirmation follows ASML’s improving outlook and quarterly earnings.
ASML provided strong extreme ultraviolet (EUV) lithography reserves and also provided a positive outlook for 2026. It anticipates 2026 revenue to be stable, supported by AI-driven demand for EUV systems. In turn, this strength is expected to be offset by a decline in revenue from China.
The company reported order intake of €5.4 billion, beating consensus estimates by 650 basis points. EUV orders grew 57% quarter over quarter. Meanwhile, memory orders increased 186% quarter over quarter, indicating a recovery in memory spending.
The September 2025 quarter ended with more than €35.2 billion in total order book. Overall, the company remains a buyer of the stock after beating and rising, anticipating that the AI tailwinds will remain and continue to generate bullish surprises in cutting-edge spending. Meanwhile, the headwinds from China for the group and ASML are “largely settled.”
ASML Holding NV (NASDAQ:ASML) develops and sells advanced semiconductor equipment, including lithography, metrology and inspection systems for chip manufacturing.
While we recognize ASML’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
READ NEXT:10 AI Stocks in the Spotlight on Wall Street and 10 AI Stocks Analysts Are Watching Closely
Disclosure: None.