ASML Shares Poised for Significant Upswing?

Wednesday's market activity delivered a powerful vote of confidence for ASML. As general market hesitation lingered, sophisticated institutional investors and leading market analysts have initiated substantial positions. With dramatically increased price targets and multi-million dollar commitments from professional funds, a critical question emerges: Is the primary equipment supplier to the chip industry on the verge of its next major upward trajectory?

The bullish sentiment is not confined to analyst reports. "Smart money" is actively establishing positions. Market reports confirm that Point72 Asset Management, the hedge fund founded by trading legend Steve Cohen, has built a substantial long position. The stake represents an investment of approximately $430 million.

Such a decisive move is widely interpreted as a powerful endorsement. When a fund of this caliber makes an aggressive purchase, it signals a conviction that the shares are currently undervalued relative to their long-term earnings potential. Investors like Cohen appear to be looking beyond short-term sector volatility, focusing instead on the company's fundamental, monopolistic market position.

This external demand is complemented by actions from the company itself. ASML is aggressively advancing its share buyback program. In the trading week concluding November 21 alone, the corporation repurchased its own shares to the value of around €181 million. This strategy not only indicates that management considers its stock attractively priced but also, by reducing the share count, enhances future earnings per share.

Should investors sell immediately? Or is it worth buying Asml?

UBS Forecasts Substantial Growth Driven by AI

The most significant catalyst comes from Swiss banking giant UBS. In a recent analysis, their experts have reaffirmed their "Buy" recommendation and substantially increased their price target from €1,000 to €1,030. The primary driver behind this upgraded outlook is the sustained artificial intelligence boom.

In taking this stance, UBS analysts are positioning themselves against a more cautious market consensus. While many observers maintain conservative estimates for 2026, UBS believes the so-called "AI super-cycle" is already visible in ASML's order books. Their projection is confident: AI-related demand could account for 15 to 20 percent of corporate revenue within the next two to three years. Consequently, the bank has revised its profit estimates upward for 2026 and 2027.

Market Response and Outlook

The convergence of these factors is having a tangible effect. The share price has stabilized and is currently trading near €874. Investor attention is now shifting away from the transitional year of 2025 toward an anticipated growth acceleration in 2026. If the stock can successfully break through near-term resistance levels, the new UBS price target may move within realistic reach.