ASML: Runaway AI Train - Industry Tailwinds Meet Momentum Risks

ASML's 20-year head start in the lithography segment underpins their AI enabler status while explaining the premium stock prices/valuations. They may benefit from the intensifying logic foundry competition, the booming memory sector, and the increased upgrading/servicing cadence. These industry tailwinds support ASML's multi-year growth prospects, aided by the improving pricing power and aggressive capacity expansion. The Hold rating is maintained, given the premium P/E of 48.66x, the overbought momentum, and the pulled forward upside potential. A correction towards the $1,550 may provide an improved margin of safety, aligning with base uptrend support and 100 DMAs.

I previously rated ASML Holding N.V. ( ASML ) ( ASMLF ) as a Hold in April 2026, given the overly done stock price momentum and the consequently expensive valuations. In this article, I shall discuss why ASML remains a