Dutch semiconductor giant ASML Holding N.V. (ASML) is scheduled to release its third-quarter fiscal 2025 results on October 15. Analysts expect a solid increase in both earnings and sales, driven by sustained demand momentum in the artificial intelligence (AI) sector. Importantly, ASML has exceeded Wall Street’s expectations for eight consecutive quarters, reflecting robust demand for its offerings.
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Expectations From ASML
ASML is the world’s largest supplier of photolithography equipment used in the production of semiconductor chips. It is also the only manufacturer of extreme ultraviolet (EUV) lithography machines, a key technology used to make the most advanced and smallest computer chips. Major chip foundries, such as Taiwan Semi (TSM) and Intel (INTC), depend on ASML for equipment.
According to TipRanks Forecast data, ASML is expected to report a 10.6% year-over-year increase in earnings to $6.37 per share. Additionally, sales are estimated to jump 10.4% to $9.05 billion, up from $8.20 billion in the same period last year.
Analysts Raise Price Targets Ahead of Results
Most analysts remain optimistic about ASML’s outlook, as rising demand for powerful chips in AI, data centers, and advanced computing keeps ASML well positioned for long-term growth. Many have raised their price targets ahead of the earnings release.
Susquehanna analyst Mehdi Hosseini reiterated his Buy rating on ASML and lifted his price target from $965 to $1,150, implying 22.8% upside potential from current levels. Hosseini expects ASML to deliver a robust beat-and-raise quarter on Wednesday, fueled by robust EUV demand and steady bookings momentum. Although some of his optimism appears to be priced into the shares, Hosseini sees potential for additional upside.
Meanwhile, J.P. Morgan analyst Sandeep Deshpande kept his Buy rating and raised the price target from $957 to a Street-high of $1,175, implying 25.5% upside potential. Also, Wells Fargo analyst Joseph Quatrochi lifted his price target to $1,105 (from $890), suggesting 18% upside potential.
However, skeptics remain as New Street analyst Pierre Ferragu downgraded ASML stock from a Buy rating to a Hold, and maintained his $918.21 price target (1.9% downside potential). Ferragu expects AI capital spending to triple by 2030, driving $130 billion in wafer fab equipment demand. However, with AI spending peaking by 2026 and valuations well above historical levels, he sees a “risky setup” for the sector, leading to the downgrade.
Is ASML a Good Stock to Buy?
On TipRanks, ASML stock has a Moderate Buy consensus rating based on seven Buys and four Hold ratings. The average ASML price target of $976.53 implies 4.3% upside potential from current levels. Year-to-date, ASML stock has surged nearly 36%.
