Arete upgrades ASML on increasing AI compute spending

As previously reported, Arete upgraded ASML (ASML) to Buy from Neutral with an EUR 879 price target The analyst, which put a Buy on the shares for first time since starting coverage in 2018, sees ASML benefitting from increased spending by TSMC (TSM). TSMC’s capex budget could be over $50B in both 2026 and 2027 given increased demand for artificial intelligence computing, the analyst tells investors in a research note. Arete also believes ASML shares already price in the risks related to its China sales. The stock in morning trading is up $4.34 to $808.50.