Morgan Stanley supports ASML Holding NV ADR (ASML.US): Bullish scenario in the bull market, expected to rise by 70%. Demand for artificial intelligence ignites capital expenditure.

Morgan Stanley released a bullish report, urging investors to buy ASML Holding NV ADR (ASML.US) stock. The bank points out that in the most optimistic scenario, with chip manufacturers increasing capital expenditures to meet the soaring demand in the field of artificial intelligence, the stock price of this Dutch semiconductor equipment giant could see a potential increase of up to 70%. As one of the bank's top stock picks, Morgan Stanley analysts state that they are more bullish on the prospects of ASML Holding NV ADR after its largest customer, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US), showed no signs of slowing down in AI expenditure trends. ASML Holding NV ADR stock price has already risen by 25% year-to-date in 2026, marking a "strong start." Analyst Lee Simpson wrote in a report on Thursday, "Higher capital expenditures in 2027 on wafer fabs and memory, as well as better-than-expected demand from China, have increased our confidence in investment." According to the bank's bullish scenario forecast, if profits exceed expectations and tech stock valuations continue to expand, ASML Holding NV ADR stock price could rise to 2000 per share. Their benchmark scenario target price is set at 1400, making it the second-highest target price among Wall Street brokerages. ASML Holding NV ADR stock rose 1.2% on Friday, closing at 1163, with a market value exceeding $500 billion this week, becoming only the third European company to reach this milestone. The core logic behind Morgan Stanley's bullish outlook is that strong market demand for ASML Holding NV ADR's cutting-edge chip manufacturing equipment is driving its profits to soar. The bank estimates that ASML Holding NV ADR's earnings per share will reach around 46 in 2027, nearly doubling from the 2025 level. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR announced better-than-expected prospects this week, reigniting market optimism for AI spending. In addition, the US and Taiwan have reached a long-awaited trade agreement, with Taiwanese semiconductor companies adding $50 billion in financing for their operations in the US. In addition to Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, Morgan Stanley points out that rising memory chip prices will prompt memory manufacturers to expand capacity, thereby increasing demand for ASML Holding NV ADR's equipment. The analysts also emphasize that sales to Chinese chip manufacturers continue to exceed expectations.