ASML (NASDAQ:ASML) Stock Jumps 1.7% - Still a Buy?

Key Points

• ASML shares rose 1.7% to $1,662.85, supported by strong EUV demand, higher guidance and increased 2026–2027 EPS forecasts from Erste Group Bank.
• Wall Street remains broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $2,079.12, although analysts caution that ASML’s high valuation requires continued growth outperformance.
• ASML reported $14.71 in quarterly EPS on $13.27 billion in revenue and will pay a reduced quarterly dividend of $2.1077 on November 4, representing a 0.5% yield.

ASML Holding N.V. (NASDAQ:ASML - Get Free Report) traded up 1.7% during mid-day trading on Wednesday. The company traded as high as $1,673.06 and last traded at $1,662.85. 1,062,503 shares traded hands during mid-day trading, a decline of 39% from the average daily volume of 1,740,339 shares. The stock had previously closed at $1,635.57.

Key ASML News

Here are the key news stories impacting ASML this week:

• Positive Sentiment: Erste Group Bank raised its ASML FY2026 EPS forecast to $47.56 from $44.01 and its FY2027 estimate to $64.62 from $60.69. The higher forecasts suggest improving expectations for the semiconductor-equipment maker’s growth and profitability. MarketBeat ASML estimates
• Positive Sentiment: Investor commentary highlighted strong EUV demand and higher guidance, reinforcing the view that ASML remains a key beneficiary of advanced-chip and artificial-intelligence infrastructure investment. ASML Gains on Strong EUV Demand and Higher Guidance
• Positive Sentiment: Zacks identified ASML as a highly rated long-term growth stock, which may support investor interest in the shares. Why ASML Is a Top Growth Stock for the Long-Term
• Neutral Sentiment: ASML is scheduled to pay its next dividend on November 4. The distribution provides shareholder income but is unlikely by itself to materially change the company’s long-term valuation. ASML Dividend Payment
• Neutral Sentiment: Reported short interest was zero as of October 26, indicating no measurable short-selling pressure, although the data does not provide a new fundamental catalyst.
• Negative Sentiment: Analyst commentary described ASML’s semiconductor-equipment business as exceptional but its valuation as expensive. With the stock trading at a high earnings multiple, further gains may depend on the company continuing to exceed elevated growth expectations. ASML Exceptional Business, Expensive Valuation

Wall Street Analyst Weigh In

Several research firms have issued reports on ASML. Argus set a $2,100.00 price target on shares of ASML in a report on Thursday, July 16th. Cantor Fitzgerald reiterated an "overweight" rating on shares of ASML in a research note on Monday, September 14th. Citigroup restated a "buy" rating on shares of ASML in a research note on Thursday, October 15th. Barclays reissued an "overweight" rating on shares of ASML in a research note on Thursday, July 16th. Finally, Morgan Stanley reiterated an "overweight" rating on shares of ASML in a research report on Tuesday, July 7th. Three research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, two have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $2,079.12.

ASML Price Performance

The firm's 50 day moving average is $1,712.72 and its 200 day moving average is $1,590.05. The firm has a market cap of $640.89 billion, a P/E ratio of 40.94, a price-to-earnings-growth ratio of 0.66 and a beta of 1.77. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.49 and a quick ratio of 1.01.

ASML (NASDAQ:ASML - Get Free Report) last posted its quarterly earnings data on Sunday, September 27th. The semiconductor company reported $14.71 earnings per share for the quarter. The company had revenue of $13.27 billion during the quarter. ASML had a return on equity of 64.24% and a net margin of 34.10%. As a group, analysts anticipate that ASML Holding N.V. will post 46.03 earnings per share for the current year.

ASML Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 4th. Stockholders of record on Tuesday, October 27th will be paid a $2.1077 dividend. This is a drop from ASML's previous quarterly dividend of $2.1507. This represents a $8.43 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Tuesday, October 27th. ASML's dividend payout ratio (DPR) is presently 17.63%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Renaissance Investment Group LLC grew its position in shares of ASML by 11.3% during the 3rd quarter. Renaissance Investment Group LLC now owns 118 shares of the semiconductor company's stock valued at $214,000 after acquiring an additional 12 shares during the period. Partners Wealth Management LLC purchased a new stake in shares of ASML in the third quarter worth $2,835,000. Soltis Investment Advisors LLC increased its stake in shares of ASML by 33.0% in the third quarter. Soltis Investment Advisors LLC now owns 5,941 shares of the semiconductor company's stock worth $10,763,000 after purchasing an additional 1,475 shares in the last quarter. Everett Harris & Co. CA raised its position in shares of ASML by 4.8% during the 3rd quarter. Everett Harris & Co. CA now owns 217 shares of the semiconductor company's stock valued at $393,000 after purchasing an additional 10 shares during the period. Finally, ERn Financial LLC raised its position in shares of ASML by 9.5% during the 3rd quarter. ERn Financial LLC now owns 230 shares of the semiconductor company's stock valued at $417,000 after purchasing an additional 20 shares during the period. 26.07% of the stock is owned by hedge funds and other institutional investors.

About ASML

ASML Holding N.V. is a Netherlands-based technology company that develops and manufactures advanced lithography systems used by semiconductor manufacturers to produce integrated circuits. Its equipment helps customers transfer intricate circuit patterns onto silicon wafers, a critical step in the production of processors, memory chips and other semiconductor devices.

ASML's product portfolio includes extreme ultraviolet (EUV) lithography systems, which support the production of the most advanced chips, as well as deep ultraviolet (DUV) lithography systems for a broad range of semiconductor applications.

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