Morgan Stanley lifted its ASML price target by 40%, moving the goal from €1,000 to €1,400. Analyst Lee Simpson kept the stock as Overweight and a Top Pick, citing expectations of a markedly stronger fiscal 2027. The bank now projects €46.8 billion in sales and roughly €45.7 billion in earnings.

Stanley’s optimism rests on rising semiconductor capital spending and surprisingly resilient demand from China. It expects a surge in foundry and memory capex, driving orders for about 80 EUV tools in 2027 from customers such as TSMC, Intel and Samsung. A catch‑up in memory capacity and a high‑NA tool rollout also bolster forecasts.

Analysts will watch order intake over the next two to three quarters for confirmation. Morgan Stanley values ASML at 31 times earnings, near the low end of its cycle‑peak range, implying modest upside if the projected growth materialises. Investors may reassess exposure as the company approaches its projected earnings peak.