ASML stock hit its highest price in just over a year on Tuesday as investor sentiment improves for the semiconductor equipment segment.
On Monday, ASML stock surged 6.6% to close at 867.30. On the stock market today, ASML climbed 1.3% to close at 878.42. Earlier in the session it notched a 52-week high of 881.46.
IBD MarketSurge charts show ASML stock deep in a 62-week cup base with a buy point of 1,110.09. However, investors could have used 826.56 as an entry from a cup that formed within the larger base, according to IBD analysis.
Other semiconductor equipment stocks rising in the past week include KLA and Lam Research.
The semiconductor equipment group now ranks No. 41 out of 197 industry groups that IBD tracks. Last month, it ranked No. 68 and six months ago it ranked No. 163.
Investment bank JPMorgan on Tuesday put out a report that declared the worst is over for ASML, which makes advanced lithography equipment for etching tiny circuits onto chips.
ASML and its chip-gear peers have been hindered over the past year by fears of weakening orders and restricted access to the China market.
ASML Stock Buoyed By Positive Reports
Meanwhile, ASML stock has responded positively to reports of continued strong capital equipment purchases by Taiwan Semiconductor Manufacturing, Mizuho Securities trading-desk analyst Jordan Klein said in a client note Tuesday.
Morgan Stanley expects 2025 to be a record year for wafer fab equipment spending. It sees spending rising 14% to $117 billion this year.
Further, Morgan Stanley analysts forecast chip-gear spending to rise 5% in 2026 to $122 billion. Sales next year should get a boost from leading-edge logic and memory chips, as well as business in China, the firm said in an Aug. 31 report.
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