ASML is poised to grow as semiconductor equipment demand picks up, particularly following Nvidia and Intel’s $5 billion deal , according to Bank of America. The bank, which has a buy rating the stock, raised its price target on U.S.-listed shares to $1,082 from $833. That signals 16% upside from Thursday’s close. “While the [Intel] deal stops short of a foundry agreement between the two parties, we think that a potentially more competitive Intel in both datacenters and PCs should be positive for semicaps,” analyst Didier Scemama said in a note to clients. Under the $5 billion deal, Intel will incorporate its central processing units into Nvidia’s AI platforms, in addition to adding its partner’s graphics to its CPUs. The partnership will also give struggling Intel a much-needed capital injection that could go toward purchasing more equipment designed to produce semiconductors, among other business expenses. Demand for lithography equipment, which is used in the microchips production process, has also risen this year — a boon for ASML, according to BofA. The stock has risen roughly 16% in the year to date. Shares could go even higher in the coming years, propelled by tailwinds from the expected opening of several new chipmaking facilities in the U.S., Scemama said. “Investors are likely to focus on 2027, which should see a substantial revenue acceleration (we model +21% yoy) owing to the opening of several new fabs in the US (Intel, Samsung and TSMC),” he noted. ASML shares have remained relatively flat over the past 24 hours following the price-target increase. BofA is in the majority of analysts covering ASML. The stock has 10 ratings of strong buy or buy and five hold ratings, LSEG data show.
