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Trang chủ » One of the best AI opportunities could be this chip stock, according to Bank of America.

One of the best AI opportunities could be this chip stock, according to Bank of America.

Bank of America says this chip stock could be one of the best AI plays

Bank of America says this chip stock could be one of the best AI plays

Bank of America has expressed its bullish sentiments towards the Dutch-based semiconductor equipment firm, ASML Holding, as the stock market surges. Analyst Didier Scemama reiterated his ‘buy’ rating on the company and raised his price target on US-traded ASML shares from $837 to $855, indicating a 20.6% rally from the close of Thursday. ASML Holding’s stock has risen by almost 30% in 2023, providing a further boost to the company’s growth prospects.

Scemama stated that ASML Holding has “industrialized next-gen EUV (Extreme Ultraviolet) lithography technology” which he believes will support many of the disruptive themes of this decade. The bank recognizes that lithography tools are a critical part of the semiconductor manufacturing process and estimates that ASML currently holds around 90% of the market share for creating these tools.

Scemama expects ASML to achieve a revenue compound annual growth rate of 17% over the next four years. He cited the company’s ability to benefit from technology transitions and novel additions in leading edge chip capacity.

The positive review from Bank of America follows the surge in Nvidia shares to an all-time high. The chipmaker’s stock price surged on the back of strong revenue guidance for the current quarter, as demand for AI chips soared. Many analysts have consequently raised their price targets on the company.

FAQs

Q: What is ASML Holding?
A: ASML Holding is a Dutch-based semiconductor equipment firm that specializes in lithography tools, which are a critical part of the semiconductor manufacturing process.

Q: What is lithography?
A: Lithography is a process used for creating microelectronic circuits and involves the transfer of a geometric pattern onto a surface using a photoresist.

Q: Why is Bank of America bullish on ASML Holding?
A: Bank of America is bullish on the company due to its next-gen EUV lithography technology, which is expected to underpin many of the disruptive trends of this decade. The bank estimates that ASML holds around 90% of the market share for creating lithography tools and sees the company benefiting from technology transitions and novel additions in leading edge chip capacity.

Q: What is the revenue compound annual growth rate expected for ASML Holding?
A: Analyst Didier Scemama expects ASML Holding to achieve a revenue compound annual growth rate of 17% over the next four years.

Q: What caused the surge in Nvidia shares?
A: Nvidia shares surged to an all-time high due to strong revenue guidance for the current quarter, as demand for AI chips soared.

Bank of America says this chip stock could be one of the best AI plays
Bank of America says this chip stock could be one of the best AI plays

One of the Best AI Plays Could be a Chip Stock According to Bank of America

Bank of America has reiterated its buy rating on Dutch-based semiconductor equipment firm ASML Holding as shares of fellow chipmaker Nvidia continue to surge. Analyst Didier Scemama reportedly raised his price target on US-traded ASML shares from $837 to $855, implying a 20.6% rally from Thursday’s close. According to Scemama, ASML has industrialised EUV (Extreme Ultraviolet) lithography technology, which he believes will underpin many of the disruptive trends of this decade. “The company benefits from technology transitions as well as new additions in leading edge logic and memory chip capacity,” he added. ASML has almost a 90% market share in making lithography tools, considered a “critical part” of the semiconductor manufacturing process.

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