Jefferies analysts expect semiconductor equipment company ASML Holding (ASML) to start receiving higher orders in the coming quarters. According to the analysts, the company’s orders should increase to 3.6 billion euros during the fourth quarter of 2024. Following that, the firm expects orders to jump to between 5 billion euros and 6 billion euros in Q1 2025.
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Jefferies believes these increased orders will come from two major ASML Holding customers: Samsung (SSNLF) and Taiwan Semiconductor Manufacturing (TSM). The analysts say Samsung may increase its orders if it secures the ability to provide Nvidia (NVDA) with high bandwidth memory chips. If that happens, it would boost ASML Holding’s sales.
Additionally, Taiwan Semiconductor Manufacturing is expected to increase orders. This comes alongside a boom in artificial intelligence (AI), which requires heavy use of processers. TSMC’s position in this market sees it serve customers including Apple (AAPL), Nvidia, and Intel (INTC). On that same note, Intel is also expected to increase its orders from ASML Holding.
What This Means for ASML Stock
If the Jefferies analysts are right, ASML Holding is about to see an increase in business in 2025. That would bring with it higher revenue and hopefully boost its profits. This could make the next few earnings reports interesting for shareholders.
For now, ASML stock isn’t seeing much movement today alongside the Jefferies note with shares down 0.6% as of this writing. This comes after a rough year for the stock after shares suffered an extreme drop in October. This leaves the stock up only 5.03% over the last year.
Is ASML Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for ASML Holdings is Strong Buy based on five Buy and one Hold ratings over the last three months. With that comes an average price target of $886.99, a high of $1,148, and a low forecast of $751.97. This represents a potential 19.92% upside for ASML shares.
