On September 18, ASML Holding NV rose 3.07% in regular trading, trading at $1,679.35 per share, with turnover of $1.916 billion. The move came after Morgan Stanley released a research note upgrading its earnings outlook for the company.

Morgan Stanley raised its revenue forecasts for ASML by 4% and 9% for the current and next fiscal year respectively, while lifting EPS estimates by 7% and 14%. The bank maintained its Overweight rating with a EUR 1,700 target price, keeping ASML as its top pick in the European semiconductor sector. Analysts expect third-quarter results to once again exceed the upper end of guidance.

The upgrade arrives amid a wave of positive catalysts. JPMorgan recently disclosed that ASML is exploring plans to produce over 110 EUV lithography systems by 2028, driven by robust AI demand. JPMorgan estimates ASML commands approximately 95% of the global lithography market. Additionally, ASML recently secured commitments from TSMC and Samsung to adopt its next-generation High NA EUV systems, while breaking ground on a new Dutch industrial campus to expand production capacity.

The broader Semiconductor Equipment sector traded higher in tandem, with Lam Research up 6.95%, Applied Materials up 6.51%, Teradyne up 5.17%, KLA Corporation up 4.75%, and AXT Inc up 3.39%.

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