JP Morgan raised its price target for ASML and reiterated its buy rating.
The upgrade follows evidence that ASML can supply more Extreme Ultraviolet (EUV) lithography systems than previously expected.
Analysts suggest the market underestimated the future shipment volume of these high-margin tools.
ASML maintains a monopoly on EUV technology, which is essential for manufacturing advanced AI chips.
Increased production capacity points to higher future revenue and earnings for the Dutch manufacturer.