RBC Capital has raised its price target for ASML Inc. (NASDAQ:ASML) to $1,625.00 from $1,550.00 while keeping an Outperform rating on the company. ASML is presently trading at $1,422.92 and carries a market capitalization of $570.42 billion. InvestingPro Fair Value estimates indicate the stock appears slightly overvalued at current levels.
The analyst house said the target increase follows ASML’s latest quarterly results, which included a record level of bookings totaling €13.2 billion. That figure meaningfully outpaced near-term expectations of roughly €8-€10 billion and substantially exceeded consensus for the quarter.
RBC flagged that demand tied to artificial intelligence projects - notably for DRAM and Advanced Logic applications - has been driving order strength and more than offset weakness in China. ASML reported revenue of $38.38 billion and showed 15.58% revenue growth over the past twelve months, metrics that the firm said align with the observed book-to-bill dynamics.
On the technology front, the analyst note emphasized productivity improvements that are increasing EUV intensity, and stated that progress on High-NA systems remains on track. RBC also raised the possibility that ASML’s fiscal 2026 guidance could be conservative, citing constraints in cleanroom capacity - particularly at TSMC - that may be limiting near-term delivery assumptions.
Looking further out, RBC expects ASML to sustain double-digit revenue momentum into fiscal 2027. The firm identified several structural supports for that view: tight DRAM supply, wider adoption of more advanced process nodes in AI processors, and the return of greater competition among foundries.
RBC reiterated its Outperform rating alongside the price-target increase, signaling continued confidence in ASML’s growth trajectory within the semiconductor equipment market. InvestingPro data shows ASML trading close to its 52-week high of $1,493.47 and posting a strong 101.29% total return over the past 12 months.
ASML’s quarterly strength prompted a series of analyst updates from other firms as well. The company reported fourth-quarter bookings of EUR13.2 billion, well above consensus expectations of EUR6.9 billion, and several brokerages responded by raising targets or ratings:
- Deutsche Bank raised its price target to EUR1,500 and maintained a Buy rating.
- Wolfe Research increased its price target to EUR1,450, citing robust quarterly results and a favorable 2026 revenue outlook.
- Barclays upgraded ASML’s rating to Overweight, pointing to rising demand for AI infrastructure.
- Jefferies lifted its price target to EUR1,260, noting the substantial order intake in Q4-25 and that most of those orders are expected to ship in 2027.
- TD Cowen also increased its price target to EUR1,500, highlighting the company’s solid results and guidance.
Together, the analyst moves reflect a broadly positive reception to ASML’s quarter among sell-side firms, with consensus views shifting higher on near- and medium-term revenue prospects.
Market participants should weigh the upbeat order and revenue trends against valuation and short-term operational constraints. ASML is approaching its 52-week peak and InvestingPro Fair Value data marks the stock as slightly overvalued at current prices, a factor that could influence near-term returns despite favorable demand dynamics.
This report focuses on the recent analyst updates and company disclosures. Additional subscriber-only research and proprietary Pro features were cited in the original reporting context but are not included here.