Goldman Sachs Group, Inc.: Demand for lithography machines remains strong, bullish on ASML Holding NV ADR (ASML.US) to rise by over 40% again.

Goldman Sachs Group, Inc. issued a research report, reiterating a "buy" rating for ASML Holding NV ADR (ASML.US) European stocks, and giving a 12-month target price of 1010 euros, which implies a potential increase of over 40% from the current stock price. Analysts led by Alexander Duval of Goldman Sachs Group, Inc. stated that ASML Holding NV ADR's revenue guidance for 2025 is 30 to 35 billion euros. Based on the company's strong order book, this guidance has largely mitigated risks related to customer order delays. In an optimistic scenario (including progress with Intel Corporation (INTC.US) and Samsung (SSNLF.US) outsourcing, capacity expansion by Taiwan Semiconductor Manufacturing Co., Ltd. (TSM.US) and SK Hynix, as well as improvement in its IBM (IBM.US) business), the company has the potential to approach the upper end of the guidance. Furthermore, the analysts believe that the increase in 2nm production capacity at ASML Holding NV ADR will drive demand for its tools in the coming years (including in the DUV market outside of China). They also noted that the increase in orders for 2nm EUV nodes will continue for several years as the node will not reach maximum construction capacity in the near future. However, any potential revenue growth will depend on the sustained strong performance of the advanced logic market and stability in the foundation market. The report also emphasized that ASML Holding NV ADR reiterated that the Chinese market will contribute approximately 20% of the group's sales in 2025, as the company continues to see strong demand in that region. Goldman Sachs Group, Inc. stated that, despite potential restrictions, ASML Holding NV ADR believes these measures will have limited impact on its service business. Overall, Goldman Sachs Group, Inc. believes that despite risks such as EUV delivery delays, cyclical capital expenditures, and unfavorable market share changes, the outlook for ASML Holding NV ADR remains optimistic.