Jefferies raises ASML, STMicro price targets on European semiconductor re-rating - Investing.com

Jefferies investment bank raised price targets for ASML and STMicroelectronics, reflecting a broader re-rating of the European semiconductor industry. ASML, as the leading semiconductor equipment manu... Read original →

Jefferies’ price target hikes for ASML and STMicroelectronics signal more than valuation rerating—they reflect Europe’s strategic entrenchment in both cutting-edge lithography and differentiated semiconductor solutions. ASML’s EUV dominance is now the linchpin of sub-3nm roadmaps for TSMC, Samsung, and Intel, while ST’s automotive-grade MCUs and SiC power devices align with the EU Chips Act’s push for supply chain sovereignty. Tightening U.S. export controls may not yet block EUV shipments directly, but heightened geopolitical scrutiny will inflate compliance overhead and spur customer diversification. Competitors like Tokyo Electron and Nikon could double down on ArF immersion tools to capture mature-node demand, while GlobalFoundries and NXP may deepen foundry alliances with ST to reduce equipment dependency. Over the next 18 months, European semiconductor momentum must shift from subsidy-fueled optimism to tangible capacity yield; any delay in ASML’s High-NA EUV ramp or ST’s Italian fab yield trajectory risks a sharp market reassessment.