Bank of America has maintained its buy rating on ASML, calling the 6% stock drop an overreaction to news that a Chinese firm can now mass-produce DUV lithography systems. Historically, China accounted for approximately 33% of ASML’s revenue, but that share is projected to fall to around 20% by 2026 due to export controls on advanced EUV machines. BofA expects the wafer fabrication equipment market to reach at least $250 billion by 2028, driven by an estimated 30% annual growth rate fueled by artificial intelligence investments. The bank forecasts ASML’s 2027 and 2028 earnings to be 6-7% above Wall Street consensus estimates, making the current stock price attractive according to BofA.
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