Ahead of ASML's Q2 earnings, JPMorgan raised its target price to $2,200, indicating a 24% upside from the current level.

Glonghui July 9th｜Lithography giant ASML will announce its Q2 2026 earnings on July 15th. Due to increasing concerns in the market about the sustainability of artificial intelligence (AI) capital expenditures, ASML—upstream in the AI industry chain—has seen relatively lackluster stock performance. Its US-listed shares have fallen more than 11% cumulatively since July. In a recently published research report, JPMorgan previewed ASML's Q2 results and pointed out that the company needs to signal strong capacity expansion and robust demand for 2027 and beyond for its stock price to break out. The bank believes that in 2027, ASML's growth is likely to significantly outpace overall growth in the global wafer fabrication equipment (WFE) market. This will not be achievable in 2026 because customers’ orders will start relatively late (beginning December 2025), leaving the supply chain unable to ramp up capacity in time, and thus the company cannot deliver more EUV equipment in 2026. JPMorgan assigned ASML an “Overweight” rating in its report, with a target price of $2,200. This target represents about a 24% upside compared to the stock’s closing price of $1,768.65 on Wednesday.