ASML’s Q4 orders make Morgan Stanley optimistic before earnings report

On the eve of ASML’s upcoming earnings report, Morgan Stanley is expressing strong positivity regarding the company’s future prospects. The firm anticipates a significant growth in orders for the fourth quarter and believes that 2027 will be a year marked by explosive performance for ASML.

Morgan Stanley’s assessment suggests that the market has already internalized the notion of moderate growth for the year 2026. They indicate that a 10% revenue growth guidance would be sufficient to meet the market’s expectations. However, the real investment opportunity, according to Morgan Stanley, lies in the subsequent year, 2027, which they view as a critical period for ASML’s performance surge.

The investment firm predicts that ASML’s demand for Extreme Ultraviolet (EUV) equipment in 2027 could potentially reach 80 units. This surge in demand is expected to drive the company’s revenue up to €46.769 billion, reflecting a substantial year-on-year increase of 28%. Their projection is based on various factors, including the early expansion of the A14 process capacity by TSMC, significant catch-up investments by DRAM manufacturers, and a resurgence in demand from logic chip manufacturers such as Intel and Samsung.

Overall, Morgan Stanley’s bullish outlook for ASML underscores the potential for remarkable growth in the coming years. By emphasizing the significance of 2027 as a pivotal year for the company’s performance, they highlight the opportunities that lie ahead for investors interested in capitalizing on ASML’s anticipated expansion.

As the financial landscape continues to evolve, with advancements in technology shaping the future of various industries, the assessment provided by Morgan Stanley offers valuable insights for those seeking to navigate the complexities of the market. With an emphasis on future growth potential and strategic considerations for investment, their analysis serves as a guide for investors looking to make informed decisions in a rapidly changing economic environment.