Goldman Sachs Raises Targets for Leading European Chip Stocks
Goldman Sachs has increased its 12-month price targets for several major European semiconductor and AI infrastructure companies, including ASML, ASM International (ASMI), BE Semiconductor Industries (BESI), and Nebius. The investment bank cited a series of positive industry developments that strengthen its outlook for semiconductor equipment demand and AI-related infrastructure growth.
Goldman raised its target price for ASML to €1,770 from €1,600, ASMI to €955 from €895, BESI to €315 from €286, and Nebius to $267 from $234. All four companies continue to hold a Buy rating from the bank.
Memory Market Growth Supports Industry Outlook
A key factor behind the upgrades is the strengthening outlook for the memory sector. SK Hynix recently announced plans to double its wafer production capacity over the next five years, reinforcing expectations of a multi-year investment cycle in memory technologies.
According to Goldman analysts led by Alexander Duval, strong demand for High Bandwidth Memory (HBM) and increasing AI-related memory requirements continue to support long-term industry growth. As artificial intelligence adoption accelerates, semiconductor manufacturers are preparing for significantly higher memory demand across multiple sectors.
China Semiconductor Spending Remains Resilient
Goldman also highlighted encouraging signals from the Chinese semiconductor market. Recent comments from Lam Research and KLA indicate that China’s wafer fabrication equipment (WFE) spending is expected to remain stable or slightly higher in 2026.
This outlook is more resilient than many investors had anticipated and suggests continued investment from Chinese chipmakers despite ongoing industry uncertainties.
AI Infrastructure Demand Continues to Accelerate
The bank’s positive view is further supported by strong momentum in AI infrastructure spending.
Broadcom recently reaffirmed its expectation of generating more than $100 billion in AI semiconductor revenue during fiscal 2027, driven by the addition of 10 gigawatts of data center capacity. Further expansion is expected in fiscal 2028.
Meanwhile, Nvidia reported that sovereign AI revenue increased by more than 80% year-over-year during the first quarter of fiscal 2027. The company also revealed that pricing for its H100 and A100 GPUs has risen by 20% and 15% respectively since the start of the year, highlighting demand that continues to exceed available supply.
Higher Forecasts for ASML, ASMI and BESI
For ASML, Goldman increased its revenue forecasts for fiscal years 2027 through 2030 by approximately 1% to 2%. The adjustment reflects a more optimistic view of demand for deep ultraviolet (DUV) immersion lithography systems, particularly from Chinese logic and memory chip producers.
The bank also raised its long-term estimates for ASMI and BESI by around 2% and 3%, respectively. Analysts expect stronger demand from AI-driven semiconductor applications to support future growth.
For BESI, Goldman sees additional upside from its mainstream die attach and hybrid bonding businesses, which are expected to benefit from increasing semiconductor complexity and advanced packaging requirements.
Nebius Receives the Largest Upgrade
Nebius experienced the most significant forecast revisions among the companies covered by Goldman Sachs.
While the bank slightly lowered its fiscal 2026 revenue estimate by around 2% due to the pace of capacity expansion, it increased projections for fiscal years 2027 through 2030 by between 2% and 9%.
Goldman cited strong customer demand, rapid capacity growth, and favorable pricing trends as key reasons behind the more optimistic outlook.
Earlier this week, Nebius announced plans to invest approximately £1.7 billion in three new Nvidia-powered facilities across the United Kingdom. The new sites are expected to deliver a combined capacity of 65 megawatts by 2027, further strengthening the company’s position in the rapidly expanding AI infrastructure market.
