ASML Stock: Strong AI Demand Strengthens Buy Case

ASML Holding N.V. delivered strong Q2 2026 results, raising full-year sales guidance to €43–45 billion and gross margin to 54–56%. Volume growth across advanced logic, DRAM, immersion systems, and installed-base upgrades underpins the upgraded outlook, with capacity expansions planned through 2028. EBITDA and free cash flow estimates for 2026–2028 were lifted by 24% and 28%, respectively, supporting a bullish price target of $2,259 (30% upside). I maintain a buy rating on ASML, citing robust AI-driven demand, margin expansion, and strong execution, with export controls on China as a key risk.

ASML Holding N.V. (ASML) delivered strong Q2 earnings along with a bullish AI infrastructure spending outlook supporting a guidance update.