BofA Names ASML Top Pick Among Semiconductor Stocks in FY26, Lifts Price Target

07:50 AM EST, 01/06/2026 (MT Newswires) -- BofA Global Research named ASML (ASML.AS) as its top pick among semiconductor stocks for 2026 amid an upbeat outlook on the semiconductor capital equipment industry, or semicaps, as part of its Year Ahead 2026 report for the European technology sector. The research firm on Tuesday raised the price target to 1,205 euros from 1,158 euros on the back of improved memory pricing, while the buy rating on the stock was reaffirmed. "Semicap outlook remains strongly positive into 2026E. Accelerating AI-driven memory demand, rising [dynamic random access memory/high bandwidth memory] layer complexity, and [nonvolatile memory chip] greenfield expansion are fuelling robust [wafer fab equipment] growth, while leading-edge logic and advanced packaging adoption broaden the customer base," analysts wrote. "We think ASML should be the largest beneficiary of accelerating DRAM CAPEX, given increasing [extreme ultraviolet] layer count in DRAM." The Dutch semiconductor equipment maker was also included in BofA's list of "25 for 2026" stocks and Europe 1 Top Ideas.