JP Morgan Raises ASML Estimates After Chipmaker Signals Higher EUV Supply

JP Morgan has raised its earnings estimates for ASML Holding NV (NASDAQ:ASML), the Dutch semiconductor equipment maker that holds a global monopoly on extreme ultraviolet (EUV) lithography machines used to manufacture advanced chips. The revision follows ASML's indication that it can supply more EUV tools than previously guided.

Recommendation Change

JP Morgan did not change its current rating on the stock but raised its earnings estimates based on the potential for higher EUV tool sales. The report did not specify a new price target.

Analyst Rationale

JP Morgan analysts believe consensus earnings estimates for ASML are materially too low. They noted that the company can supply more EUV tools than previously guided, boosting revenue and profit expectations.

Context

ASML is the sole supplier of EUV lithography machines, critical for producing the most advanced chips. The stock has seen mixed performance recently amid fluctuating semiconductor demand. No other analyst changes were reported.

Conclusion

JP Morgan's revision reflects a positive view on ASML's ability to increase output, potentially leading to higher-than-expected earnings. However, investors should monitor actual demand for EUV tools from customers like TSMC and Samsung.