ASML Holding NV (NASDAQ:ASML) is a key player in the semiconductor industry, known for its exclusive production of extreme ultraviolet (EUV) lithography machines. These machines are crucial for manufacturing advanced microchips. ASML's unique position in the market has made it a vital supplier for major tech companies, especially as demand for semiconductors grows with the rise of artificial intelligence (AI).

On January 28, 2026, Cowen & Co. maintained a "Buy" rating for ASML, with a "hold" action, reflecting confidence in the company's future. At that time, ASML's stock was priced at $1,423.61. TD Cowen also raised ASML's price target from EUR 1,000 to EUR 1,500, as highlighted by TheFly, indicating a positive outlook for the company's stock performance.

ASML is experiencing a surge in demand, driven by the expanding AI boom. The company's CEO has noted that AI demand is accelerating, contributing to ASML's revenue growth projections for 2026. In the fourth quarter, ASML's bookings more than doubled, signaling a significant turnaround after a period of middling results. This surge in demand is reflected in the company's stock performance, which has doubled over the past six months.

ASML reported stronger-than-expected orders for the fourth quarter, significantly boosting its medium-term outlook. The company's Q4 bookings reached 13.16 billion euros, nearly double market expectations, driven by robust demand for its advanced EUV lithography systems. Specifically, EUV orders amounted to 7.4 billion euros with 14 systems sold, highlighting the growing confidence among customers in the sustainability of AI-related demand.

Despite a slight decrease of about 2% in ASML's stock price, currently trading at approximately $1,425.51, the company's market capitalization remains strong at approximately $552.53 billion. The stock has fluctuated between a low of $1,408.05 and a high of $1,493.48 during the day, with the latter marking its highest price over the past year. This reflects positive market sentiment towards ASML's future prospects, as the semiconductor cycle appears to be shifting.