Bond.az - The iShares Semiconductor ETF (SOXX) is up 65% YTD, while the global SPIE average is at 50-70%. Against this backdrop, UBS analysts have identified an overlooked stock.
UBS believes ASML Holding is the most attractive stock to buy now. The analysts cite three reasons: capacity remains above demand, memory litho share keeps increasing, and the High NA story is not over yet.
ASML is rated Buy with a price target of €1,900. The company monopolizes production of advanced lithography machines. Customers include TSMC, Samsung, Intel, and SK Hynix.
UBS sees stronger revenue growth in memory and advanced logic. EUV revenues are expected to grow 37% YoY in 2027 and 10% YoY in 2028E.
The benefits of High NA are too big to ignore: 20-40% cost savings on critical layers and process simplification. The firm's analysis suggests High NA can deliver >100% throughput gains compared to alternatives.
