Analysts at Jefferies expect semiconductor manufacturing equipment company ASML Holding (ASML) to start seeing orders increase in the coming quarters. Analysts say the company’s order book is expected to rise to 3.6 billion euros in the fourth quarter of 2024, before surging to 5 billion euros to 6 billion euros in the first quarter of 2025. .
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Jefferies attributes these order increases to ASML Holding’s two major customers, Samsung (SSNLF) and Taiwan Semiconductor Manufacturing (TSM). Analysts say Samsung could increase orders if it secures the ability to supply Nvidia (NVDA) with high-bandwidth memory chips. If that happens, ASML Holding’s sales will likely increase.
Additionally, orders from Taiwan Semiconductor Manufacturing Co., Ltd. are expected to increase. This comes in tandem with the boom in processor-intensive artificial intelligence (AI). TSMC’s position in this market means it serves customers such as Apple (AAPL), Nvidia, and Intel (INTC). Similarly, Intel is expected to see an increase in orders from ASML Holding.
What this means for ASML stock
If Jefferies analysts are correct, ASML Holdings is on track to expand in 2025. This is expected to increase revenue and profits. This could make the next few earnings reports interesting for shareholders.
So far, ASML stock hasn’t seen much movement today, along with Jefferies bonds, with the stock down 0.6% at the time of writing. This comes after a difficult year for stocks, with stock prices plummeting in October. This means the stock price has increased by just 5.03% over last year.
Should you buy, sell, or hold ASML stock?
Turning to Wall Street, the analyst consensus rating for ASML Holdings is a Strong Buy, based on 5 Buy ratings and 1 Hold rating over the past three months. This results in an average price target of $886.99, a high of $1,148, and a low of $751.97. This represents a potential 19.92% increase in ASML stock.
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