Freedom Broker Upgrades ASML to Buy

Freedom Broker analyst Egor Tolmachev upgraded ASML (NASDAQ: ASML) from Hold to Buy with a price target of $1,650.00 (from $950.00).

“ASML delivered a broad-based Q1 FY26 beat and raised its full-year revenue guidance, reinforcing the AI-driven upcycle thesis while navigating an increasingly complex export-control environment.

Gross margin landed at the high-end of guidance on a favorable EUV mix and an installed-base contribution that meaningfully exceeded expectations.

The geographic and end-market composition shifted sharply toward memory and South Korea, reflecting the HBM-driven DRAM buildout cycle, while China’s share continued to normalize.

Q2 guidance came in modestly below consensus, but management’s tone was unambiguously constructive: memory customers are capacity- constrained through 2026 and beyond, non-EUV demand has reversed from flat to growing, and recently disclosed Samsung and SK Hynix mega-orders corroborate the multi-year EUV ramp.

On the technology front, the 1,000-watt EUV source demonstration at SPIE secures Low-NA extensibility through 2033.”

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