JP Morgan: ASML Holding NV ADR (ASML.US) "darkest moment" has passed, reiterates "buy" rating.

JPMorgan issued a research report, reiterating a "buy" rating on ASML Holding NV ADR (ASML.US) as the top pick, with a target price of 822 euros. JPMorgan stated that the worst case scenario for the company may have already passed and news regarding the logic and memory markets are expected to improve. After releasing a disappointing second quarter report in July, ASML Holding NV ADR stated "we are still preparing for growth in 2026 but cannot confirm this plan at this stage", since then, ASML Holding NV ADR has seen some improvements in the news flow in August and September. Therefore, according to JPMorgan, the worst news seems to be behind them. While 2026 may not be a strong growth year for the company, ASML Holding NV ADR is likely to provide better medium-term expectations that will help drive strong sales in the logic and storage markets in 2027. Key indicators that have changed since the summer include the company's statements at conferences showing that they have seen gradually improving news over the summer without new negative news. Firstly, the uncertainty with orders related to the U.S. due to no tariffs on semiconductor equipment exports to the U.S. has passed and they should start seeing orders for planned U.S. capacity; secondly, data points from companies like NVIDIA Corporation (NVDA.US), Broadcom Inc. (AVGO.US), and large-scale enterprises have shown strong performance, with no signs of a slowdown in artificial intelligence spending. Sales from Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR are benefiting from artificial intelligence, meaning their capital spending in 2026 should also be strong. Lastly, demand for HBM chips remains strong and storage chip prices show no signs of weakness. Signs indicate that Samsung may also soon receive certification from NVIDIA Corporation for HBM4, which will have a very positive impact on device shipments from late 2026 to 2027. Therefore, JPMorgan believes that the risks of weak performance guidance for ASML Holding NV ADR in 2026 are decreasing, with strong trends expected for 2027. For the stock, it is important that once ASML Holding NV ADR announces its 2026 revenue guidance on October 15, only the data for 2027 will be important. Although ASML Holding NV ADR will not provide specific guidance, the market is expected to speculate positive trends, which should help the stock; in addition, the stock price of ASML Holding NV ADR is still below the average P/E ratio level of 30-35 times, making it still attractive.