Bank of America raised ASML's revenue estimates by 13-15% across CY26-28E, driven by higher Argon Fluoride Immersion (ArFi) units/ASPs, Extreme Ultraviolet (EUV) ASPs, and Installed Base Management revenues. Gross Margin was upgraded by 2.2-3.3 percentage points due to a richer mix of ArFi and EUV tools, higher software revenues, and increased upgrade contributions. ASML's 2026E EPS was raised to €41.49 (up 25%), 2027E EPS to €58.16 (up 24%), and 2028E EPS to €75.43 (up 21%).
ASML's strong outlook, particularly 75% memory revenue growth, confirms tightening supply for leading-edge compute and DRAM as the industry structurally transitions to EUV.