ASML Stock Can Hit $1,500, According to Pro

The semiconductor stocks have enjoyed another big leg higher to start the year. With unprecedented AI demand and aggressive AI data center builds pushing the fabs to ramp up on capacity expansions, it should be no surprise to see the broader basket of semiconductor names making up for lost time.

With the iShares Semiconductor ETF (NASDAQ:SOXX) surging more than 9% so far in 2026, it certainly feels like the AI trade is back on. And if you’ve rotated out of the names, the feeling of FOMO (fear of missing out) might nudge you to get back into some of the names you may have sold out of in the recent months of relative choppiness.

With a memory chip shortage powering the data storage firms higher while the more cyclical semiconductor equipment makers get in on the boom, many may be wondering if it’s too late to act on the latest upswing in the hottest of semiconductor plays. Though the memory makers might be a tad overheated right here, I do see plenty of value in the more cyclical semiconductor equipment makers.

ASML stock might be the semiconductor stock to keep buying

Notably, shares of ASML (NASDAQ:ASML) look like a great catch-up trade for investors who want a massive beneficiary without having to pay as high a premium. Of course, the stock has already gone parabolic, gaining about 80% in just the past year. With 17% of the gains coming year to date, though, the shares are seemingly going vertical, as the photolithography machinery (it’s necessary for making the latest and greatest AI chips) orders come in hot.

Undoubtedly, demand seems to be off the charts for AI chips, and that’s finding its way down to the equipment makers themselves. With a virtual monopoly over lithography machines, it’s the only game in town for a lot of fabs. And while the past-year run has been magnificent, many analysts see more upside for the firm as the wave of AI looks to lift it significantly higher. The stock might be hot, but it’s not nearly as hot as its peers.

Shares are up just over 25% from their 2024 peak, which isn’t exactly bubbly, at least not in my view. In any case, a number of analysts see shares of ASML rising over $1,500 for the year ahead. As foundries look to expand capacity, I do not doubt that ASML could have the potential to surprise to the upside for its coming quarters. But given the steep ups and downs in the semi equipment makers, there is bound to be an upset at some point.

Shares are trading at a premium, but tailwinds are fierce

I think we’re closer to the start of a boom than the end of one. But at 44.6 times forward price-to-earnings (P/E), could investors be pricing in too much of the boom?

It’s tough to tell, but the EUV machine makers are the place to be right now. And there’s potential for shares of ASML to lift off in a similar manner as the memory chip makers. Anywhere you look on Wall Street, it’s not too hard to find a bull on the Dutch semi equipment maker, especially as memory makers rush to invest to meet demand for DRAM, which nobody can seem to get enough of in 2026.

All considered, I view ASML as a solid semiconductor pick and perhaps one of the more intriguing ones as the semiconductor scene experiences another massive growth spurt. Perhaps there was a reason Michael Burry got out of his bearish bets against the semiconductor industry a few years ago. He was early, perhaps many, many years too early.