JP Morgan raises ASML estimates as chipmaker signals it can supply far more EUV tools than previously guided

JP Morgan has concluded that statement net estimates for ASML Holding NV (NASDAQ:ASML, XETRA:ASME), the Dutch semiconductor instrumentality shaper that holds a planetary monopoly connected utmost ultraviolet (EUV) lithography machines utilized to manufacture precocious chips, are materially excessively debased and necessitate important upgrades for 2027 and 2028.

The bank's reassessment follows a displacement successful ASML's ain messaging, which has moved from guiding cautiously connected portion volumes to signalling that its manufacturing capableness is much flexible than antecedently communicated.

At its first-quarter results, ASML indicated it expected to vessel astatine slightest 80 low-NA EUV tools successful 2027, wherever low-NA refers to the modular procreation of the exertion arsenic opposed to the newer and much costly high-NA variant.

Since then, the institution has indicated that its antecedently communicated capableness ceiling of 90 EUV tools is not a hard bounds and that volumes tin beryllium expanded without constructing caller cleanrooms.

JP Morgan identifies 4 routes done which ASML tin execute higher output: reducing manufacturing rhythm times successful the 2nd fractional of 2027; repurposing cleanroom abstraction presently utilized for probe and development; diverting capableness earmarked for high-NA tools to nutrient further low-NA units until high-NA request accelerates; and reactivating fast-shipment protocols utilized during the Covid-era proviso crunch if request requires it.

The slope present believes ASML could present 110 oregon much low-NA EUV tools without further gathering capacity, and has raised its ain portion estimates to 90 tools arsenic an archetypal step, flagging further upgrades arsenic likely.