ASML Holding NV (ASML) just joined the market's momentum elite, and there's a pretty compelling story behind why Wall Street is getting excited about the semiconductor equipment maker.
The company, which supplies critical equipment to Nvidia Corp. (NVDA) and other chip giants, saw its momentum score climb from 89.36 to 92.14 in the past week. That metric measures relative strength based on price movement and volatility, and now puts ASML in the 92nd percentile against its peers. Translation: only about 8% of comparable stocks are performing better right now.
The Technical Picture Looks Solid
ASML isn't just riding momentum. The company's quality score sits at 94.05, reflecting strong operational efficiency and financial health. Price trends are positive across short, medium, and long-term timeframes, painting a picture of sustained strength rather than a flash-in-the-pan rally.
Why Bernstein Is Betting Big
The momentum surge coincides with Bernstein upgrading ASML to "Outperform" and slapping a €1,300 price target on the stock. Analyst David Dai named ASML a "top pick" for 2026, and his reasoning is worth unpacking.
Dai sees a perfect storm brewing: accelerating memory investment combined with robust demand for logic chips. He projects that 2026 and 2027 will be pivotal years, driven largely by a recovery in the DRAM market. Major manufacturers are planning significant capacity additions, which means they'll need ASML's lithography tools, especially for the new "1c node" technology.
Here's the kicker: Bernstein argues that the 28% lithography intensity required for next-generation chips justifies the valuation, even if it looks a bit stretched on traditional metrics. When you're the company making the equipment that everyone needs to build cutting-edge chips, pricing power tends to work in your favor.