Quiet here, but ASML's share price has been rising for weeks.
Why?
J.P. Morgan declared that the worst quarter of ASML NV (AS:ASML) is behind the company and confirmed its status as a top pick.
It cited an improvement in order development, strong demand in the logistics and storage segments and a clearer growth path for 2027 as reasons.
After a disappointing second quarter report, in which ASML stated:
"We continue to prepare for growth in 2026, but cannot confirm it at this stage",
the news situation for the company improved in August and September, according to the brokerage house.
Several developments have reduced uncertainty over the summer. As no tariffs will be imposed on shipments of semiconductor equipment to the US,
"uncertainty around US-related orders is likely behind the company".
ASML is expected to receive orders for its planned US capacity, while Nvidia's AI-related spending,
Broadcom
und (-4.84%) Hyperscale
-Kunden continue to be strong. TSMC,
ASMLs largest customer, reported year-on-year sales growth of 37% through August 2025, and analysts expect this trend to continue for the rest of the year.
The expansion of the 2-nanometer process at TSMC and the expected acquisition of the A16 process by Nvidia are expected to increase the demand for EUV exposure and bring ASML higher orders in 2026 and especially 2027.
The memory market also looks promising, driven by demand for high-bandwidth memory solutions.
DRAM prices remained strong, supported by continued AI-related demand, and J.P. Morgan indicated that the tight supply and demand environment is expected to continue until new greenfield capacity comes online in 2027.